Gold and silver prices surge: Will govt regulate retail rates amid rally? Ministry clarifies
Parliamentary data revealed that gold imports fell 17.3% in volume from 9.15 lakh kg ($34.4 billion) in 2014-15 to 7.57 lakh kg ($58 billion) in 2024-25, a 69% value surge. Silver imports dropped sharply, 33% from 77.1 lakh kg ($4.52 billion) to 51.6 lakh kg ($4.83 billion), up 6.7% in value.
- Dec 16, 2025,
- Updated Dec 16, 2025 2:16 PM IST
The gold and silver have seen a major rally in calendar year 2025. Both gold and silver prices reached record highs, driven by global economic uncertainty, inflation concerns, and strong industrial demand for silver. Silver, in particular, saw a more significant percentage surge than gold. In 2025, gold prices surged 63% for the year, while silver posted an even sharper rise of 118%.
For Indian households, gold and silver symbolise savings and tradition. Yet, over the past decade, physical purchases have plummeted despite soaring import bills, driven by global price spikes.
Parliamentary data revealed that gold imports fell 17.3% in volume from 9.15 lakh kg ($34.4 billion) in 2014-15 to 7.57 lakh kg ($58 billion) in 2024-25, a 69% value surge. Silver imports dropped sharply, 33% from 77.1 lakh kg ($4.52 billion) to 51.6 lakh kg ($4.83 billion), up 6.7% in value.
Domestic prices mirror international benchmarks, rupee-dollar rates, and taxes, the Finance Ministry explained in Lok Sabha. Recent rallies stem from geopolitical tensions, global growth worries, safe-haven buying, and central bank hoarding.
DMK MPs Thiru Arun Nehru and Sudha R questioned in Lok Sabha potential Centre's stabilisation measures, like duty cuts, tax tweaks, or retail price controls, to ease household burdens during festivals and weddings. They also probed RBI gold reserves' role in rupee stability.
Government's reply
Minister of State for Finance Pankaj Chaudhary stated precious metal prices are market-determined; the government does not fix them. However, relief steps abound.
“Nevertheless, as a relief measure to consumers, the government lowered customs duty on gold imports from 15 to 6% in July 2024. The government introduced measures such as Gold Monetization Scheme (GMS), Gold exchange‑traded funds (ETFs) and Sovereign Gold Bond Scheme to reduce the demand for physical gold and to mobilise idle domestic gold, so that part of demand is met from local stocks rather than fresh imports, thereby reducing external vulnerability and price pressures,” the finance ministry said in Lok Sabha.
In July 2024, customs duty on gold imports was slashed from 15% to 6%, curbing landed costs, smuggling incentives, and volatility. This aligns domestic prices closer to global trends.
To cut physical demand and import reliance, schemes like Gold Monetisation Scheme (GMS), Gold ETFs, and Sovereign Gold Bonds mobilize idle household gold. Regulated imports via nominated agencies, banks, and refineries enhance traceability, shrink grey markets, and prevent speculative spikes.
RBI's gold holdings, as of March 31, 2025, 879.58 tonnes (up 57.48 tonnes yearly), bolster rupee confidence and external stability, the ministry noted.
Prices have eased slightly from peaks but remain elevated amid risks, rate-cut hopes, and steady central bank buys. For buyers, even minor dips matter during peak seasons.
Why gold, silver prices are rising now
Gold prices climbed on Tuesday, December 16, buoyed by a softer US dollar and bets on early Federal Reserve rate cuts, while silver lingered near record highs on strong industrial demand and supply constraints. In India, 24-carat gold hit Rs 13,386 per gram and 22-carat Rs 12,270 per gram. Spot silver dipped 1.2% globally to $63.11 an ounce—close to Friday's peak of $64.65—while domestic prices held at Rs 199 per gram (Rs 1.99 lakh/kg).
The government said the sharp rise in domestic gold and silver prices over the past year has been driven mainly by international market trends, rupee-dollar fluctuations and geopolitical uncertainty, ruling out any proposal to regulate retail precious metal prices. Analysts expect volatility to persist in the near term.
Rahul Kalantri, VP Commodities at Mehta Equities, said gold found support amid weak US manufacturing data and a softer dollar, while silver outperformed on expectations of strong industrial demand. He sees near-term support for gold at $4,275–$4,245 an ounce and resistance at $4,340–$4,375, while silver faces resistance around $64–$64.55 an ounce.
The gold and silver have seen a major rally in calendar year 2025. Both gold and silver prices reached record highs, driven by global economic uncertainty, inflation concerns, and strong industrial demand for silver. Silver, in particular, saw a more significant percentage surge than gold. In 2025, gold prices surged 63% for the year, while silver posted an even sharper rise of 118%.
For Indian households, gold and silver symbolise savings and tradition. Yet, over the past decade, physical purchases have plummeted despite soaring import bills, driven by global price spikes.
Parliamentary data revealed that gold imports fell 17.3% in volume from 9.15 lakh kg ($34.4 billion) in 2014-15 to 7.57 lakh kg ($58 billion) in 2024-25, a 69% value surge. Silver imports dropped sharply, 33% from 77.1 lakh kg ($4.52 billion) to 51.6 lakh kg ($4.83 billion), up 6.7% in value.
Domestic prices mirror international benchmarks, rupee-dollar rates, and taxes, the Finance Ministry explained in Lok Sabha. Recent rallies stem from geopolitical tensions, global growth worries, safe-haven buying, and central bank hoarding.
DMK MPs Thiru Arun Nehru and Sudha R questioned in Lok Sabha potential Centre's stabilisation measures, like duty cuts, tax tweaks, or retail price controls, to ease household burdens during festivals and weddings. They also probed RBI gold reserves' role in rupee stability.
Government's reply
Minister of State for Finance Pankaj Chaudhary stated precious metal prices are market-determined; the government does not fix them. However, relief steps abound.
“Nevertheless, as a relief measure to consumers, the government lowered customs duty on gold imports from 15 to 6% in July 2024. The government introduced measures such as Gold Monetization Scheme (GMS), Gold exchange‑traded funds (ETFs) and Sovereign Gold Bond Scheme to reduce the demand for physical gold and to mobilise idle domestic gold, so that part of demand is met from local stocks rather than fresh imports, thereby reducing external vulnerability and price pressures,” the finance ministry said in Lok Sabha.
In July 2024, customs duty on gold imports was slashed from 15% to 6%, curbing landed costs, smuggling incentives, and volatility. This aligns domestic prices closer to global trends.
To cut physical demand and import reliance, schemes like Gold Monetisation Scheme (GMS), Gold ETFs, and Sovereign Gold Bonds mobilize idle household gold. Regulated imports via nominated agencies, banks, and refineries enhance traceability, shrink grey markets, and prevent speculative spikes.
RBI's gold holdings, as of March 31, 2025, 879.58 tonnes (up 57.48 tonnes yearly), bolster rupee confidence and external stability, the ministry noted.
Prices have eased slightly from peaks but remain elevated amid risks, rate-cut hopes, and steady central bank buys. For buyers, even minor dips matter during peak seasons.
Why gold, silver prices are rising now
Gold prices climbed on Tuesday, December 16, buoyed by a softer US dollar and bets on early Federal Reserve rate cuts, while silver lingered near record highs on strong industrial demand and supply constraints. In India, 24-carat gold hit Rs 13,386 per gram and 22-carat Rs 12,270 per gram. Spot silver dipped 1.2% globally to $63.11 an ounce—close to Friday's peak of $64.65—while domestic prices held at Rs 199 per gram (Rs 1.99 lakh/kg).
The government said the sharp rise in domestic gold and silver prices over the past year has been driven mainly by international market trends, rupee-dollar fluctuations and geopolitical uncertainty, ruling out any proposal to regulate retail precious metal prices. Analysts expect volatility to persist in the near term.
Rahul Kalantri, VP Commodities at Mehta Equities, said gold found support amid weak US manufacturing data and a softer dollar, while silver outperformed on expectations of strong industrial demand. He sees near-term support for gold at $4,275–$4,245 an ounce and resistance at $4,340–$4,375, while silver faces resistance around $64–$64.55 an ounce.