Gold and silver prices extended gains for a second consecutive session on Friday, driven by safe-haven demand amid rising geopolitical tensions and market expectations of further US Federal Reserve rate cuts.
MCX Gold
- February gold futures opened at ₹1,36,999 per 10 grams, up from the previous close of ₹1,35,804.
- Prices touched a high of ₹1,37,098 and were trading ₹1,36,173 (+0.27%) by 8:10 PM IST.
- Spot gold in international markets rose 1.8% to $4,402 per ounce.
MCX Silver
- March silver futures surged ₹9,126 per kilogram, hitting a high of ₹2,44,999 from Thursday’s close of ₹2,35,873.
Other precious metals also saw strong gains, with platinum up 4.76% and palladium rising 3.7% on Friday.
Record Gains for 2025
Despite a brief profit booking earlier this week due to CME margin hikes, 2025 remained a historic year for precious metals:
- Silver: +147% — best annual performance since 1979, driven by supply shortages, industrial demand, and US critical mineral status.
- Gold: +64% — supported by Fed rate cuts, geopolitical risks, and strong central bank buying.
- Platinum: +126% — best 15-year gain.
- Palladium: +81% — strong industrial and investment demand.
Physical Demand and Dollar Impact
Retail demand for gold surged in top hubs in India and China after a recent correction from all-time highs, lifting physical premiums.
Meanwhile, the US dollar index remained at 98.43, following its sharpest drop in eight years in 2025. A weaker dollar makes dollar-denominated metals more affordable for holders of other currencies, further supporting the rally.
Minutes from the FOMC’s December meeting indicated that policymakers are increasingly open to easing monetary policy if inflation continues to cool, although opinions differ on the timing and magnitude of potential rate cuts.
Disclaimer:
Market prices are indicative and subject to change. Readers should exercise caution and consult experts before making investment decisions.
