Buyers are moving from traditional 22K to more affordable 18K options. | Image:
Freepik
Gold prices in India have climbed sharply this year, although they faced a slight pullback on Monday. According to the All India Sarafa Association, gold of 99.9% purity fell Rs 200 to Rs 97,470 per 10 grams in Delhi, extending losses for the seventh day in a row. The 99.5% purity gold also slipped Rs 150 to Rs 97,050 per 10 grams.
However, despite this recent correction, gold has seen a remarkable run in 2025 so far.
Gold Price Prediction
Sugandha Sachdeva, Founder of SS WealthStreet, explained that gold prices have risen about 25% in the first half of this year. The rally was driven by geopolitical tensions, continued central bank buying, strong ETF demand, a weaker dollar index, and uncertainty over global growth due to U.S. tariff policies.
She noted that prices have likely peaked near $3,500 per ounce and could now face a correction.
“There could be some short-term buying interest, but prices are likely to see selling pressure at higher levels,” Sachdeva said. She expects gold could gradually correct to around $3,000 per ounce, and if that support is broken, fall further towards $2,750 in the third quarter.
Domestically, she anticipates prices may rise towards Rs 97,500–98,000 per 10 grams, but believes Rs 1,01,000 is unlikely to be crossed soon.
Even so, she maintains that the long-term trend for gold remains positive, noting it has delivered compound annual returns of about 13.7% over the last decade. For long-term investors, any significant correction could be a good buying opportunity.
Silver Price Prediction
Silver has also been riding a strong uptrend, with prices surging around 22% this year. On Monday, silver dropped Rs 200 to Rs 1,02,800 per kilogram in Delhi. Earlier, it had touched a record high of Rs 1,09,748. International silver prices have reached a 13-year high as well.
Silver’s strength has been fueled by rising industrial demand in electronics, solar panels, 5G technologies, and electric vehicles. According to Sachdeva, about 50–60% of silver demand comes from industrial applications, while investment demand has also increased due to the weak dollar and safe-haven buying.
Looking ahead, she expects silver to remain strong overall and even outperform gold in the second half of this year, especially as Chinese demand picks up. She forecasts silver could test Rs 1,15,000 and then Rs 1,25,000 per kilogram domestically, with international prices potentially rising to $42 per ounce.
However, she cautioned that corrections are also likely. Domestically, silver has support at Rs 1,02,000, and internationally at $34 per ounce. As long as those levels hold, the outlook remains positive.
