Silver Rates Surge to ₹1.20 Lakh/kg – Gold Prices Gain ₹500 as US Tariffs Shake Markets

New Delhi, August 28, 2025 – Precious metals have once again become the center of global financial attention as silver prices touched an unprecedented peak of ₹1.20 lakh per kilogram, while gold surged by ₹500 per 10 grams in domestic markets. This sudden rally comes at a time when the United States has imposed fresh tariffs on key imports, sparking uncertainty across international trade and pushing investors towards safe-haven assets.

The surge in bullion prices is not just a reflection of global economic turbulence but also highlights India’s strong domestic demand during the festive and wedding season. With global investors rushing to safeguard their wealth, both silver and gold have entered uncharted territory, creating excitement as well as concerns among traders, jewellers, and common households.

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Why Silver Touched ₹1.20 Lakh/kg – A Historic Moment

For decades, silver has been considered the “poor man’s gold,” but in the past few years, it has evolved into a highly strategic metal with industrial and investment demand driving prices. Today’s surge to ₹1.20 lakh/kg marks a record high for the Indian bullion market.

Several key factors have contributed to this rise:

1. Global Tariffs & Trade War:
   The US tariffs on imports have rattled global supply chains. Precious metals are traditionally viewed as safe assets in times of geopolitical and trade tensions, leading to higher demand.

2. Weakening Dollar:
   The US dollar index has shown weakness over the past few weeks, making silver and gold more attractive for investors around the world.

3. Rising Industrial Demand for Silver:
   Beyond jewellery, silver is widely used in electronics, solar panels, and green technologies. With clean energy investments rising globally, demand for silver has hit new highs.

4. Festive Demand in India:
   India remains one of the largest consumers of silver, especially during Raksha Bandhan, Diwali, and the wedding season. Seasonal demand is providing additional upward momentum.

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Gold Gains ₹500 – Investors Turn to Safe Haven

While silver has stolen the spotlight, gold prices also rose significantly, gaining ₹500 per 10 grams in today’s trade. In times of global economic distress, gold continues to remain the first choice for risk-averse investors.

Gold’s surge has been supported by:

• Global Recession Fears: With trade wars heating up, investors fear global growth slowdown. Gold provides security against inflation and economic shocks.

• Central Bank Purchases: Countries like China and Russia continue to increase their gold reserves, driving international demand.

• Stock Market Volatility: With equity markets showing instability, investors are shifting capital to bullion markets.

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Impact of US Tariffs on Bullion Markets

The new round of tariffs imposed by the United States has created ripples across global commodity markets. Experts suggest that tariffs increase the cost of imports, disrupt trade balances, and lead to inflationary pressures. Whenever inflation fears rise, gold and silver naturally benefit as hedging assets.

This scenario has forced not only large-scale investors but also middle-class households to rethink their savings and investment strategies. A surge in gold and silver is often seen as a warning sign of broader economic stress.

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Indian Market Reaction – Jewellers, Traders, and Consumers

The sudden rally in bullion has created mixed sentiments in Indian markets.

• Jewellers are witnessing a slowdown in bulk purchases as higher prices discourage middle-class buyers. However, festive demand and wedding season orders are keeping sales steady.

• Traders are optimistic as prices are expected to remain firm in the coming weeks, supported by global uncertainty.

• Consumers are in a dilemma – while they want to invest before prices rise further, the steep increase has already stretched household budgets.

A shopkeeper in Delhi’s Chandni Chowk, one of India’s largest jewellery hubs, shared, “We are seeing more inquiries than actual purchases. People are worried prices may rise further, so they want to lock in rates now, but affordability is becoming a challenge.”

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Historical Comparison – Silver and Gold in Perspective

To understand the significance of today’s surge, it’s important to compare the current prices with past benchmarks.

• In 2010, silver was trading at around ₹45,000/kg in India.

• By 2020, during the COVID-19 pandemic, silver touched ₹75,000/kg.

• Now in 2025, silver has crossed the ₹1.20 lakh/kg mark – nearly a 60% increase in just five years.

Gold too has shown a remarkable journey:

• In 2005, gold averaged ₹7,000 per 10 grams.

• By 2020, it surged past ₹50,000 per 10 grams.

• Today in 2025, it is trading above ₹68,000 per 10 grams, and with a fresh ₹500 jump, experts believe it could test ₹70,000 soon.

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Expert Opinions – What Analysts Predict

Market analysts believe that the rally in silver and gold is far from over.

• Anuj Gupta, Commodity Analyst: “Silver has strong support at ₹1.15 lakh/kg and resistance at ₹1.22 lakh/kg. If global trade tensions escalate, we may see silver testing ₹1.25 lakh soon.”

• Ravindra Rao, Head of Research at Kotak Securities: “Gold’s safe-haven appeal will continue. With US inflation data due next week, volatility will increase. If inflation rises, gold could easily cross ₹70,000 per 10 grams.”

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Future Outlook – What Should Investors Do?

For investors, the question is whether to buy at current levels or wait for corrections. Experts recommend a balanced approach:

• Long-term Investors: Gold remains a must-have in every portfolio. Even at high prices, systematic buying can provide long-term security.

• Short-term Traders: Silver’s volatility offers trading opportunities but requires caution. Sharp corrections are possible.

• Households: Avoid panic buying. Festivals may see discounts and offers from jewellers, making it a better time to purchase.

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Global Ripple Effect – How the World is Watching

The surge in Indian bullion prices is part of a larger global phenomenon. Internationally, gold is trading above $2,450 per ounce, while silver is nearing $35 per ounce – both multi-year highs.

The ripple effects are visible in:

• China: Increasing stockpiling of precious metals.

• Europe: Investors moving away from volatile equities towards bullion-backed ETFs.

• Middle East: Rising gold demand in Dubai’s jewellery markets.

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Final Thoughts

The rise of silver to ₹1.20 lakh/kg and gold’s ₹500 surge is more than just a commodity story – it reflects a world gripped by economic uncertainty. With US tariffs shaking trade, inflationary fears mounting, and festive demand peaking, the outlook for precious metals remains bullish in the near term.

For the average Indian household, however, this rally is a double-edged sword – while it secures wealth against inflation, it also makes ornaments and investments costlier.

As global uncertainty deepens, gold and silver will continue to glitter, but the question remains: how long can this shine last before markets stabilize?