Gold and silver prices extended gains amid rising demand from Chinese institutional investors and central banks, driven by geopolitical tensions and market volatility, with experts warning gains may depend on ongoing global uncertainties.
Gold and silver extended their advance on Tuesday, with prices supported by a fresh wave of demand for havens as investors sought shelter from market volatility. Business Standard reported that Chinese institutional investors have increased their gold exposure, while the country’s central bank has also stepped up purchases, adding to the metal’s appeal. Deutsche Bank has separately said that total gold demand topped 5,000 tonnes for the first time in 2025, with central banks accounting for 863 tonnes of buying, underscoring the depth of official-sector demand.
On the Multi Commodity Exchange, the benchmark October gold contract opened at ₹1,54,699 per 10 gram, up ₹1,600 from the previous close, before rising further to ₹1,55,100. Silver also firmed, with the September contract opening at ₹2,39,999 per kg and trading around ₹2,39,154 later in the session. In the international market, gold on Comex was near $4,474 an ounce and silver was close to $66 an ounce. ICBC Standard Bank has said such strength reflects persistent geopolitical tension, central bank buying and technical momentum that has kept gold above key moving averages.
The latest move comes against a broader backdrop of tightness in precious metals markets. Deutsche Bank noted that silver’s rally has been helped by strained physical supply and the prospect of US trade action, which has lifted imports and deepened shortages in parts of Asia. Sharekhan has also pointed to global instability, tariff uncertainty and Middle East tensions as factors that have kept both metals bid, with gold repeatedly drawing support from safe-haven flows and official buying.
Market commentators remain broadly constructive on the trend. The India Bullion and Jewellers Association said in a December report that exchange-traded funds were still adding to gold holdings while silver supply conditions were tightening. Global X, meanwhile, described the sector as being in a structural bull market, driven by reserve diversification by central banks, currency concerns and improving industrial demand for silver. Even so, recent reports from Deutsche Bank and ICBC Standard Bank suggest that the pace of gains may depend on whether those same geopolitical and fiscal fears continue to intensify.
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