GJC today issued its annual review of the bullion market, highlighting the extraordinary rally in gold and silver during 2025, which has pushed both metals to record or near-record highs by December and the factors driving this surge.

The sharp rally in gold and silver witnessed this year is the result of several global and domestic forces acting in tandem. Global economic uncertainty, marked by geopolitical tensions, war-like situations, and a slowdown in major economies, has prompted investors worldwide to seek safe-haven assets. Gold, long regarded as the ultimate safe haven, has seen heavy buying interest as a result.

Another major factor has been the expectation of interest rate cuts by the United States. As soon as markets sensed that the Federal Reserve may reduce rates in the coming months, the appeal of gold rose sharply, since non-interest-bearing assets tend to gain value faster in such environments. Adding to this momentum, the weakness of the US dollar has naturally lifted gold and silver prices at the international level.

Central banks across the globe have also played a pivotal role. Countries such as China, Turkey, and India have increased the gold component in their foreign exchange reserves, reinforcing the long-term bullish trend. Meanwhile, silver has benefited not only from its role as a jewellery metal but also from its growing importance as an industrial metal. Demand for silver has risen rapidly in solar panels, electric vehicles, and the battery industry, adding extra momentum to its price trajectory.

In India, strong physical demand during the wedding and festive season has further supported prices. Rising bullion purchases as a safe investment option have also contributed to the upward trend.

Looking ahead, GJC believes that the uncertain global environment, expectations of rate cuts, dollar weakness, central bank buying, and industrial demand for silver will continue to drive both metals into a strong bullish trend. While volatility may increase, the overall outlook remains positive for 2026.

Rajesh Rokde, Chairman of GJC, said: “The bullion market in 2025 has been a clear reminder that precious metals are strategic assets, not speculative instruments. Gold’s historic rise is a direct reflection of global uncertainty and, more importantly, the unwavering trust that Indian households and investors place in it as a store of value across generations. Silver has decisively evolved beyond tradition … emerging as a critical metal powering the future through renewable energy, solar applications, and electric mobility, while retaining its cultural and jewellery relevance.

This year has firmly established that gold and silver are not just commodities traded on screens, but enduring pillars of economic stability, cultural heritage, and India’s journey toward technological and sustainable growth.”

Avinash Gupta, Vice Chairman of GJC, added: “As we look toward 2026, the industry must prepare for a more complex environment. Volatility will be part of the journey, yet the underlying drivers — from central bank accumulation to industrial demand — remain intact. For jewellers, investors, and consumers alike, the opportunity lies in understanding these dynamics and positioning wisely. Precious metals will continue to safeguard wealth, but they will also increasingly power the technologies of tomorrow. The GJC will stand alongside the trade, ensuring that our community adapts and thrives in this evolving landscape.”