Gold prices maintained their unprecedented rise on Wednesday. Silver futures on the MCX reached a new high of Rs 2,23,359/kg, subsequently experiencing a slight decline to Rs 2,22,500 per kilogram. Additionally, gold futures commenced trading with an increase of Rs 362, reflecting a rise of 0.26%, now priced at Rs 1,38,247 per 10 grams. The precious metals continued to gain traction, driven by increasing anticipations of U.S. interest rate reductions, heightened global geopolitical tensions, and robust demand for safe-haven assets.
On Tuesday, gold prices experienced a notable increase, closing higher in both domestic and international markets. This rise can be attributed to a resurgence of investor interest, influenced by macroeconomic factors and ongoing geopolitical tensions. In India, the February gold futures contract on MCX concluded at Rs 1,37,885 per 10 grams, reflecting an increase of 0.83%. Meanwhile, the March silver futures contract finished at Rs 2,19,653 per kilogram, demonstrating a notable rise of 3.19%. The observed gains align with global trends, as both precious metals achieved unprecedented lifetime highs.
Silver, notably, continued its unprecedented ascent by surpassing the $70 per ounce threshold for the first time in European trading on December 23, 2025. It reached a peak of 72 and has experienced a 35% increase over the past month, alongside a remarkable 139% rise year-on-year. Beginning at approximately $29 at the start of the year, silver has surged by over 144% year-to-date, achieving its most impressive annual performance since 1979. The rally propelled the metal beyond its inflation-adjusted peak from 1980, highlighting the magnitude of this year’s gains.
Gold demonstrated resilience, surpassing the $4,500 per troy ounce threshold and now targeting the $4,890 level. Silver prices, in the current context, seem to be approaching the $78 per troy ounce threshold. Manoj Kumar Jain attributed the bullish momentum to robust U.S. GDP growth of 4.3% in the third quarter, which has bolstered expectations of a Federal Reserve rate cut in the January policy meeting. Furthermore, the U.S. President’s plan to appoint a new Fed Chair in January has intensified the sentiment surrounding precious metals. “The diversion of investor focus from riskier assets to safe-haven instruments amid global uncertainties continues to support prices,” Jain noted. He anticipates that volatility in gold and silver will continue this week, influenced by movements in the U.S. Dollar Index, which was recently observed around 97.81, reflecting an increase of 0.09 points or 0.09%, alongside general market fluctuations as the Christmas holidays approach.