Mumbai, Dec 26: The All India Gem & Jewellery Domestic Council (GJC) released its annual bullion market review, highlighting an extraordinary rally in gold and silver during 2025 that has driven both precious metals to record or near-record levels by the end of the year.
According to the council, the sharp surge in prices has been shaped by a convergence of global and domestic factors. Heightened geopolitical tensions, war-like situations in several regions, and a slowdown across major economies have fuelled widespread economic uncertainty, prompting investors to turn to safe-haven assets. Gold, traditionally regarded as the ultimate hedge against instability, witnessed strong buying interest throughout the year.
Expectations of interest rate cuts in the United States further strengthened bullion prices. Market anticipation that the US Federal Reserve may ease rates in the coming months boosted the appeal of non-interest-bearing assets such as gold, while a weakening US dollar added upward pressure on international gold and silver prices.
Central bank activity also emerged as a key driver. Several countries, including China, Turkey and India, increased gold holdings in their foreign exchange reserves, reinforcing a long-term bullish outlook.
