Gold and silver prices recorded a sharp rise on February 23, 2026, with silver climbing nearly ₹14,000 per kilogram and gold continuing its strong rally this year, becoming costlier by ₹25,000 per 10 grams so far in 2026, as Finance Minister Nirmala Sitharaman attributed the surge primarily to aggressive gold buying by central banks worldwide.
Gold and silver prices jump sharply amid strong global demand
On Monday, February 23, 2026, precious metal prices witnessed a significant spike. According to data released by the India Bullion and Jewellers Association, the price of 10 grams of 24-carat gold increased by ₹3,154, rising from ₹1,55,066 to ₹1,58,220. Meanwhile, silver prices surged by ₹13,761 per kilogram, moving from ₹2,50,314 to ₹2,64,075.
Experts believe that the upward trend in both metals may continue in the coming days, supported by strong global demand and macroeconomic uncertainties. So far in 2026, gold has become costlier by ₹25,000 per 10 grams, while silver has risen by ₹35,000 per kilogram. The year has been marked by sharp volatility and record-breaking levels in both metals.
On January 29, gold touched an all-time high of ₹1.76 lakh per 10 grams, while silver reached ₹3.86 lakh per kilogram, reflecting extraordinary momentum in the bullion market. Although prices corrected slightly afterward, they remain significantly elevated compared to levels at the end of 2025.
The price movement this year shows dramatic fluctuations. On December 31, 2025, gold stood at ₹1,33,195 per 10 grams and silver at ₹2,30,420 per kilogram. By January 10, 2026, gold had risen to ₹1,37,122 and silver to ₹2,42,808. On January 20, gold climbed further to ₹1,47,409, while silver jumped to ₹3,09,345. By January 30, gold reached ₹1,65,795 and silver ₹3,39,350.
A correction followed in early February, with gold at ₹1,56,255 and silver at ₹2,59,100 on February 10. On February 20, gold slipped to ₹1,55,066 and silver to ₹2,50,314. However, by February 23, gold rebounded to ₹1,58,428 per 10 grams and silver to ₹2,65,550 per kilogram, reflecting renewed buying interest.
Gold prices vary according to purity. On February 23, 24-carat gold was priced at ₹1,58,428 per 10 grams, 22-carat at ₹1,45,120, 18-carat at ₹1,18,821 and 14-carat at ₹92,680. Across major cities, 24-carat gold prices hovered around ₹1.61 lakh to ₹1.62 lakh per 10 grams. In Delhi, Jaipur and Lucknow, the price stood at ₹1,61,500, while in Mumbai and Kolkata it was ₹1,61,350. Chennai recorded a slightly higher rate of ₹1,62,110.
The rally follows an already extraordinary year in 2025, when gold surged by ₹57,000, marking a 75% increase. On December 31, 2024, 10 grams of 24-carat gold cost ₹76,000, rising to ₹1.33 lakh by December 31, 2025. Silver recorded an even sharper increase of ₹1.44 lakh, or 167%, during the same period, climbing from ₹86,000 per kilogram at the end of 2024 to ₹2.30 lakh by the end of 2025.
Sitharaman cites central bank buying, warns banks on mis-selling
Finance Minister Nirmala Sitharaman attributed the recent spike in gold prices to aggressive purchases by central banks around the world. She stated that global central banks have been accumulating large quantities of gold, creating sustained demand pressure in international markets.
According to estimates, central banks purchased 863 tons of gold in 2025. This figure is expected to increase to around 950 tons in 2026, reflecting continued diversification of reserves amid geopolitical and economic uncertainties. Investment in gold exchange-traded funds is also projected to rise to 825 tons, further strengthening demand.
Investment banking firm UBS has projected that gold prices could continue to climb during 2026. The firm estimates that gold may reach $6,200 per ounce by mid-year. In rupee terms, this could translate to a price of approximately ₹1.80 lakh per 10 grams, suggesting further upside potential.
Sitharaman clarified that gold and silver imports into India are not currently at alarming levels and that the Reserve Bank of India is closely monitoring the situation. Her remarks sought to reassure markets that domestic import levels remain under control despite global price pressures.
In addition to commenting on bullion prices, the Finance Minister strongly reprimanded banks and insurance companies over the mis-selling of financial products. She expressed displeasure that some banks were prioritizing the sale of insurance and other financial instruments rather than focusing on their core banking functions.
The Finance Ministry directed banks and insurance companies not to sell incorrect or unsuitable policies to customers. Sitharaman emphasized that customer interests must remain paramount and that institutions should avoid misleading practices in pursuit of higher commissions.
For consumers planning to buy gold, experts advise caution and due diligence. Buyers should purchase only certified gold with a Bureau of Indian Standards hallmark, which confirms purity and authenticity. Hallmark numbers are typically alphanumeric codes that specify carat value. Additionally, buyers are advised to cross-check gold prices from multiple reliable sources on the day of purchase, as rates vary depending on purity such as 24-carat, 22-carat or 18-carat gold.
With global demand remaining strong and central banks continuing their accumulation strategy, precious metal markets are expected to remain volatile yet firmly supported. The sustained rally in gold and silver underscores their enduring appeal as safe-haven assets during periods of economic uncertainty.
