Precious Metals Rally: Gold Jumps To 7-Week High, Silver Doubles YTD On Strong Demand

Gold prices climbed to a seven-week high on December 12, 2025, driven by strong safe-haven demand amid rising geopolitical tensions and a weakening U.S. dollar. Spot gold advanced 0.7% to around $4,473 per ounce, its highest point since October 21, also recording a 2.7% gain for the week. Silver surged as well, jumping 3% to $63 per ounce after briefly touching a record of $64.32, putting it on track for a 9.5% weekly rise and more than doubling in value year-to-date.

The rally was supported by several key drivers. The U.S. dollar softened to near two-month lows, boosting the appeal of non-yielding bullion for global investors. U.S. jobless claims increased to a multi-year high, reinforcing expectations of further Federal Reserve rate cuts-even after the central bank's recent 25 basis-point reduction and its cautious stance on future easing. At the same time, geopolitical risks, including U.S. actions targeting Venezuelan oil shipments, intensified safe-haven flows toward precious metals.

Silver benefited further from persistent supply constraints and strong industrial demand, especially from sectors such as solar panel manufacturing, electronics, and green energy. Tight global inventories and recent record highs highlighted silver's dual role as both an industrial metal and an investment asset.

In India, the surge was reflected in domestic markets as well. 24-carat gold (10 grams) surpassed ₹1,30,000, with 995 purity gold priced at ₹1,30,046, driven by heightened wedding season activity. Silver rose sharply to ₹1,92,781 per kilogram, gaining more than ₹4,500 in a single day, although high prices widened market discounts and subdued physical buying. Analysts observed that even with festive demand, jewelry purchases remained cautious as customers sought deals amid elevated rates.

Market participants are now closely watching Fed policy signals, U.S. economic indicators, and global trade tensions for direction. Gold's steady performance despite equity volatility offers it continued support, while silver's supply-demand imbalance points to the possibility of further strength ahead. Investor focus also remains on inflation dynamics and central bank gold purchases as reserves continue to expand. The latest upswing in precious metals underscores their lasting appeal during periods of uncertainty, combining macroeconomic positioning with safe-haven demand.