Friday proved to be a remarkable day for precious metals, as gold prices reached yet another record high. Investors flocked to the safety of bullion, driven by increasing expectations of US interest rate cuts in the coming year. Gold February futures on the MCX experienced an increase of Rs 800, reaching a record high of Rs 1,38,991 per 10 grams. In the early trading session, silver March futures contracts experienced a significant increase, rising by more than Rs 8,000 to reach a new high of Rs 2,32,741 per kg. Gold reached a peak of $4,530.60 per ounce before experiencing a slight decline to $4,502.75 in spot trading by 0225. US gold futures for February achieved a notable milestone, reaching a record $4,533.60 per oz, reflecting an increase of 0.7%. In the interim, silver captured attention with a notable increase of 3.4%, reaching $74.35 per ounce and achieving a historic high of $75.14 per ounce.
As of 2025, gold has surged by 72%, consistently breaking previous records. The current dynamics are driven by a compelling combination of declining US yields, accumulation by central banks, a retreat from dollar-denominated assets, and increased geopolitical instability. Upon returning to the domestic market, both metals concluded Wednesday with gains. Gold February futures concluded at Rs 1,38,097 per 10 grams, reflecting a modest increase of 0.15%. In contrast, silver March futures surged to Rs 2,23,790 per kg, marking a notable rise of 1.88%.
Nonetheless, the metals faced various challenges. The unforeseen decline in US jobless claims to 214,000, compared to the anticipated 224,000, constrained gold’s potential for appreciation. In addition to that, some holiday profit-booking occurred, momentarily dulling the luster—but only slightly. “Gold is maintaining its position above the significant $4,500 threshold and may be targeting $4,890, while silver appears stable above $70, with a potential focus on $78 in the upcoming sessions,” stated Manoj Kumar Jain. He noted that persistent risk aversion and a transition from volatile assets are consistently directing capital towards precious metals, sustaining bullish momentum.
The US Dollar Index remained subdued near its two-month lows, hovering at 97.91, slipping marginally by 0.04 points. “Investor focus remains on the ongoing US blockade of crude shipments from Venezuela, continued hostilities between Russia and Ukraine, and a recent military strike by Washington against ISIS in Nigeria,” stated Jigar Trivedi. “Meanwhile, markets continue to anticipate two quarter-point rate cuts by the Federal Reserve next year as inflation moderates and labor market conditions ease, even as Fed officials exhibit differing views on the future trajectory,” he added.