Key Points:
- Silver jumped Rs. 8,196 to Rs. 231,986 per kg by 10 AM on MCX
- Record intraday high of Rs. 232,741 touched during trading session
- Gold rose Rs. 936 to Rs. 139,033 per 10 grams, also hitting record peak
- Industrial demand from solar panel manufacturing fuels unprecedented rally
- Experts predict silver could reach Rs. 2.50 lakh per kg by 2026
- Price variations across cities: gold cheapest in Raipur, silver in Chandigarh
The Indian bullion market witnessed unprecedented chaos on December 26, 2025, as silver prices exploded the moment trading commenced. By 10 AM, silver on the Multi Commodity Exchange (MCX) was trading at approximately Rs. 231,986 per kilogram, representing a staggering single-day increase of Rs. 8,196. This massive surge caught even seasoned investors off guard, as such rapid appreciation is exceptionally rare in the precious metals market. During the trading session, silver touched an all-time high of Rs. 232,741, while its lowest point remained elevated at Rs. 224,374, showing minimal retracement from the opening gains.
Gold Follows Silver’s Meteoric Rise
While silver stole the spotlight, gold prices also posted impressive gains, though more modest in comparison. In the morning session, 10 grams of gold on MCX traded at Rs. 139,033, marking an increase of approximately Rs. 936 from the previous close. Gold reached its own record high of Rs. 139,083 per 10 grams, contributing to the overall bullish sentiment in the bullion market. This collective surge has significantly increased financial pressure on families purchasing jewelry during the ongoing wedding season, traditionally the peak demand period for gold in India.
City-Wise Price Variations Create Arbitrage Opportunities
Retail prices across Indian cities showed notable variations, creating temporary arbitrage opportunities for savvy traders. Gold was cheapest in Raipur today, priced at Rs. 139,170 per 10 grams, while Bhopal and Indore commanded the highest rates at Rs. 139,350. Silver displayed similar regional disparities, with Chandigarh offering the most competitive price at Rs. 2,31,300 per kilogram. In contrast, Bhopal and Indore in Madhya Pradesh saw silver prices reach Rs. 2,31,540, reflecting local demand-supply dynamics and transportation costs.
Industrial Demand Drives Unprecedented Rally
Market analysts attribute this historic surge primarily to explosive industrial demand, particularly from the green energy sector. The increasing use of silver in solar panel manufacturing, electric vehicle components, and 5G infrastructure has boosted global demand substantially. Silver’s unique electrical conductivity makes it irreplaceable in photovoltaic cells, and as India and other nations accelerate their renewable energy targets, consumption continues to climb. Additionally, volatility in international markets, driven by geopolitical tensions and currency fluctuations, has prompted investors to seek safe-haven assets.
Expert Predictions Point to Continued Upside
Leading commodity analysts estimate that silver prices could easily reach Rs. 2.50 lakh per kilogram by 2026 if current momentum persists. Rajesh Khanna, senior analyst at Mumbai Bullion Association, stated, “The structural shift toward green energy has created a permanent increase in silver demand. We haven’t seen such a supply-demand imbalance in decades.” International factors, including inventory drawdowns at COMEX warehouses and increased ETF inflows, support this bullish outlook. The rupee’s relative weakness against the dollar has further amplified price gains for Indian investors.
Retail and Industrial Impact Assessment
Jewelry retailers report a sudden slowdown in silver ornament sales as customers balk at the new price levels, though investment demand for silver bars and coins has surged. Industrial users, particularly solar panel manufacturers, face margin pressures and are scrambling to secure long-term supply contracts. Small and medium enterprises that use silver in electronics and medical devices are exploring alternative materials or hedging strategies. The wedding season, which typically drives 30% of annual gold demand, is experiencing a shift toward lower-weight jewelry as families adjust their budgets.
Market Outlook and Risk Factors
While the outlook remains bullish, experts warn of potential correction risks if the US Federal Reserve signals more aggressive rate hikes or if industrial demand shows signs of cooling. Profit-taking at these elevated levels could trigger sharp pullbacks. However, the fundamental drivers, green energy transition and limited new mine supply, suggest strong floor prices. Investors are advised to exercise caution and consider systematic investment plans rather than lump-sum purchases at current peaks.
