Gold and silver prices have shown contrasting trends at the start of the week. While silver prices witnessed a sharp surge driven by global and China-related developments, gold prices eased slightly during early trade on the Multi Commodity Exchange (MCX) on Monday.
Silver Continues Its Strong Rally
Silver prices have shown no signs of slowing down in 2025. On Monday, MCX silver prices jumped by more than ₹14,000 per kilogram at market opening, crossing the ₹2.54 lakh per kg mark. Compared to the previous closing price of ₹2,39,787 per kg, silver opened at a new record high of ₹2,54,174 per kg, reflecting a rise of ₹14,387 in a single session.
Last week itself, silver prices had already surged by over ₹32,000 per kg in just four trading sessions, highlighting the metal’s exceptional momentum this year.
Gold Prices Slip Slightly
In contrast, gold prices showed some weakness. The MCX gold contract with February 5 expiry opened lower at ₹1,39,501 per 10 grams, slipping by ₹372 compared to its previous close of ₹1,39,873. Although the decline is relatively small considering gold’s strong rally in recent months, it provided some temporary relief to buyers.
Why Is Silver Rising So Fast? The China Factor
The sharp rise in silver prices can be attributed to multiple global factors. A weaker US dollar and expectations of interest rate cuts by the US Federal Reserve have pushed investors toward safe-haven assets like precious metals.
However, silver’s industrial demand has played a crucial role. The metal is widely used in electric vehicles, electronics, renewable energy, and various industrial applications. Demand has been rising steadily, while supply growth has remained limited.
Adding to this, reports suggest that China—the world’s largest silver producer—is planning to tighten silver export rules starting January 1, 2026. The Chinese government may introduce stricter export licensing norms, which could restrict global supply and further push prices higher.
Elon Musk Also Flags Silver Concerns
Tesla CEO and the world’s richest individual, Elon Musk, has also expressed concern over rising silver prices. According to a report by The Guardian, Musk posted on X (formerly Twitter) stating that the situation is “not good,” as silver is a critical component in many industrial and manufacturing processes.
With strong industrial demand, supply concerns, and geopolitical factors at play, silver prices may remain volatile but firm in the near term. Gold, meanwhile, could see short-term corrections but continues to hold long-term strength as a safe-haven asset.