Precious metals continued their meteoric rise on Friday, December 26, with gold and silver hitting fresh record highs for the fourth consecutive session. Strong demand for safe-haven assets, driven by expectations of US Federal Reserve rate cuts and mounting geopolitical uncertainties, has fueled the rally across metals.
Gold Hits New Peaks
Gold futures for February delivery on MCX surged 1% to ₹1,39,550 per 10 grams, inching closer to the ₹1.4 lakh mark. The rally marks the fourth straight day of record highs, bringing the month-to-date gain to 10% and pushing the 2025 year-to-date surge to an impressive 81%.
Silver Continues Its Surge
Silver March futures on MCX jumped 5.1%, or ₹11,457 per kilogram, to a historic ₹2,35,247, taking year-to-date gains to a staggering 167%. In global markets, spot silver crossed $75 per ounce for the first time, reaching $75.64, while spot gold touched a new record of $4,530.60 per ounce.
Platinum and Palladium Also Rally
Other precious metals also saw significant gains. Spot platinum rose 9.3% to $2,465.20 per ounce, after hitting an all-time high of $2,448.25 earlier. Palladium climbed 8.6% to $1,942, following a three-year high in the previous session. Both metals are widely used in automotive catalytic converters, and their strong performance reflects tight supply, tariff uncertainties, and a rotation from gold investment demand. Year-to-date, platinum has surged roughly 170%, while palladium has gained over 90%.
Key Drivers: Rate Cuts and Geopolitical Tensions
The ongoing rally has been propelled by expectations of at least two US interest rate cuts in 2026. Lower interest rates typically support non-yielding assets like gold and silver, making them attractive to investors seeking returns in a low-rate environment.
Geopolitical developments have further bolstered safe-haven demand. The US has recently enforced a temporary “quarantine” on Venezuelan oil imports and carried out airstrikes against Islamic State militants in northwest Nigeria in response to attacks on local Christian communities.
Industrial Demand Boosts Silver
Silver’s record performance has also been driven by industrial demand. Structural supply deficits, its designation as a US critical mineral, and rising use in solar and electronics applications have propelled prices far beyond traditional levels, surpassing gold’s gains for the year.
Outlook
With continued global uncertainty, low-interest-rate expectations, and strong industrial demand, analysts believe gold and silver are likely to remain supported in the near term. Traders and investors are advised to monitor both geopolitical developments and central bank actions, which could influence metals markets significantly in 2026.
