Despite gold reaching record levels, cultural demand will sustain gold ownership in India, and silver’s function as an industrial input may drive its price over $50 per ounce, a report said on Thursday. “We believe that while gold may not replicate its stellar YTD 2025 performance, its upward trajectory is far from over. The rise has entered a phase of structural endurance rather than speculative exuberance,” the report from MP Financial Advisory Services said.

“Thanks to industrial demand, silver has the required merits to cross over the $50 mark this time,” the financial consultancy said. The demand for gold and silver continues to remain buoyant in India’s Diwali season as buyers adjust to record prices by changing buying patterns, it added.

Consumers prefer lighter, lower-carat designs, leveraged exchange and old-gold programmes and have experimented with digital gold and sovereign gold bonds, the report added. Gold prices increased from approximately $1,900 an ounce in November 2022 to nearly $3,850 by October 2025, with domestic prices exceeding Rs 1 lakh per 10 grams. Silver prices rose from $24 an ounce to approximately $47, bolstered by industrial demand in solar panels, electronics, and electric mobility.

The rally in gold was fuelled by higher expectations from US rate cuts, sustained central-bank buying, and industrial restocking across solar and electronics supply chains. Gold reaffirmed its position as a stable store of value amid macro flux, while silver amplified the momentum as the cyclical bellwether of a broader industrial revival, the financial consultancy mentioned.

As of June, the US, the largest holder of official gold reserves, held 8,133 tonnes, followed by Germany (3,350 tonnes). Among emerging markets, China (2,299 tonnes), India (880 tonnes), and Turkey (635 tonnes) have been active accumulators, underlining a gradual diversification away from the US dollar, the report noted.