MCX gold prices edged lower in early trade on Thursday, January 1, as investors booked profits amid a firmer US dollar. However, losses in the yellow metal remained limited due to growing expectations of further interest rate cuts by the US Federal Reserve later this year.
At around 10 am, MCX gold February futures slipped 0.13% to ₹1,35,267 per 10 grams, while MCX silver March contracts traded 0.06% higher at ₹2,35,842 per kg, supported by improved spot demand.
Stellar rally in 2025
Gold and silver delivered exceptional returns in 2025. According to MCX data, domestic spot gold surged by ₹56,727, or 75%, rising from ₹75,913 per 10 grams on December 31, 2024, to ₹1,32,640 per 10 grams on December 31, 2025.
Silver outperformed gold, jumping by ₹1,43,601, or 167%, to ₹2,29,452 per kg from ₹85,851 per kg over the same period.
Globally, gold recorded its strongest annual gain since 1979, rising 66% in 2025, driven by supportive macroeconomic conditions.
What drove precious metal prices?
US Fed rate cuts and expectations of further monetary easing, strong central bank buying, robust inflows into gold-backed ETFs, and elevated geopolitical uncertainty pushed gold prices to record highs last year.
Silver benefited additionally from robust industrial demand, particularly from electric vehicles, solar power, semiconductors, and data centres, coupled with tight global supply.
Quick Read
Today’s trade
Gold dipped on profit booking; silver gained on spot demand.
Why gold didn’t fall sharply
Expectations of US Fed rate cuts supported prices.
2025 performance
Gold rose 75%; silver surged 167% on MCX.
2026 outlook
Gold seen heading towards ₹1.85–₹2 lakh per 10 grams.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Commodity prices are volatile and influenced by global economic factors. Investors should consult certified financial advisors before making investment decisions.
