KKN Gurugram Desk | As the wedding season approaches and with the global economic landscape in flux, both gold and silver have seen remarkable price increases in March 2025, following a record-breaking performance in February 2025. During this month, gold prices surged by ₹4,250 per 10 grams, while silver prices saw a dramatic increase of ₹7,454 per kilogram. On March 28, 2025, gold reached a new peak of ₹89,306 per 10 grams, while silver touched an all-time high of ₹100,934 per kilogram.
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Despite the Eid holidays causing a pause in market activities, both metals have shown significant gains this year. As of now, gold has gained ₹13,566 and silver has increased by ₹14,917 since the start of the year.
This article will explore the factors driving the prices of gold and silver, the current trends in the market, and what to expect moving forward.
Reasons Behind the Surge in Gold and Silver Prices
There are several key factors contributing to the remarkable rise in gold and silver prices in March 2025. These include geopolitical tensions, interest rate cuts, and central bank purchases of gold. Let’s take a closer look at each of these factors:
1. Geopolitical Tensions
The ongoing China-US trade war, along with the Ukraine conflict, has led to significant geopolitical instability. In such times of uncertainty, investors often flock to gold and silver as safe-haven assets. As the tensions between global superpowers escalate, both gold and silver have gained in value due to their appeal as secure investments during times of crisis.
2. Expectations of Federal Reserve Interest Rate Cuts
Market participants are closely watching the Federal Reserve’s stance on interest rates, with many expecting a rate cut in the near future. Historically, when interest rates are reduced, the value of fiat currencies tends to decline, which drives up the price of gold and silver. Investors tend to favor gold as a hedge against inflation and currency depreciation, and this expectation of rate cuts has contributed to the rising prices of both metals.
3. Continued Purchases of Gold by Central Banks
In addition to geopolitical factors and interest rate expectations, central bank gold purchases have also played a significant role in the rise of gold prices. In FY25, the Reserve Bank of India (RBI) purchased 32 tons of gold, which has further bolstered demand for the precious metal. Central banks around the world continue to accumulate gold as part of their reserve management strategy, adding additional upward pressure to prices.
Gold Price Performance in March 2025
March 2025 has been an exceptional month for gold, with multiple new price records being set. On March 28, gold hit a new high of ₹89,306 per 10 grams, breaking previous records. Some other notable milestones in March include:
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On March 20, 2025, gold reached ₹88,761 per 10 grams, setting a new record for the month.
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On March 19, 2025, gold touched an all-time high of ₹88,680 per 10 grams.
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On March 18, 2025, gold hit ₹88,354, just shy of the all-time high.
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On March 17, 2025, gold surged to ₹88,101 per 10 grams, surpassing the record set on March 13, 2025, when it reached ₹86,843.
Silver Price Performance in March 2025
Silver has also followed a similar upward trajectory in March 2025. The price of silver reached its highest ever recorded price on March 28, touching ₹100,934 per kilogram. This surge can be attributed to the same factors affecting gold, including geopolitical instability and central bank purchases. Below are some key points in the silver price movement during March:
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On March 20, 2025, silver reached ₹100,410 per kilogram.
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On March 19, 2025, silver touched ₹100,450 per kilogram.
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On March 13, 2025, silver surged to ₹100,400 per kilogram, setting a new high for the month.
Market Prices Across Major Cities
As of March 31, 2025, gold and silver prices have varied slightly across major cities in India. Here’s a breakdown of the prices in different locations:
Delhi
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Gold: ₹89,010 per 10 grams
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Silver: ₹100,410 per kilogram
Mumbai
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Gold: ₹89,160 per 10 grams
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Silver: ₹100,590 per kilogram
Chennai
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Gold: ₹89,420 per 10 grams
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Silver: ₹100,880 per kilogram
Hyderabad
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Gold: ₹89,310 per 10 grams
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Silver: ₹100,740 per kilogram
Kolkata
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Gold: ₹89,050 per 10 grams
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Silver: ₹100,450 per kilogram
Bengaluru
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Gold: ₹89,230 per 10 grams
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Silver: ₹100,660 per kilogram
What to Expect Moving Forward: Gold and Silver Outlook for 2025
Looking ahead, experts believe that gold prices could continue to rise, possibly reaching ₹91,000 per 10 grams in India. According to Riya Singh from MK Global, gold’s global price is expected to fluctuate between $2,975 and $3,035 per ounce, but if the trade wars intensify, it could even reach $3,150 per ounce. This potential surge in global prices, combined with a weak rupee, could push domestic gold prices even higher.
As for silver, the precious metal is expected to continue its upward trend as well. While silver generally follows gold’s lead, its price volatility is often higher. Silver’s industrial applications, along with its role as a safe-haven asset, make it a favored choice for many investors. Analysts predict silver could also see a further increase in value in the coming months, driven by both demand for investment and industrial usage.
Factors to Watch for in the Gold and Silver Markets
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Global Economic Conditions: Ongoing geopolitical tensions and market volatility can continue to influence the demand for safe-haven assets like gold and silver.
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Interest Rate Cuts: Any official announcements regarding interest rate cuts, particularly from major economies like the US Federal Reserve, will have a direct impact on the price of precious metals.
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Currency Movements: A weakening of the Indian Rupee against the US Dollar would likely lead to higher domestic prices for gold and silver, as the metals are priced internationally in dollars.
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Central Bank Purchases: The continued accumulation of gold reserves by central banks, particularly in emerging markets, will support higher gold prices in the long term.
The price movements of gold and silver in March 2025 reflect both the global and domestic economic challenges, making these metals an attractive investment choice. With ongoing geopolitical tensions, potential interest rate cuts, and central banks continuing their gold purchases, both gold and silver prices are expected to stay strong in the coming months.
For investors looking to buy gold and silver, these metals continue to offer a safe and profitable investment option. The price volatility, particularly in silver, also presents opportunities for strategic investments. However, prospective buyers should remain cautious and keep an eye on market trends to make informed decisions.
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