Both gold and silver prices surged to historic highs on Tuesday, December 23, driven by escalating geopolitical tensions and expectations of further US Federal Reserve rate cuts next year, following signs of easing inflation and a cooling labor market.
On the Multi Commodity Exchange (MCX), February gold futures opened at ₹1,38,297 per 10 grams, up from the previous close of ₹1,36,744, and climbed to a fresh record high of ₹1,38,496, marking a gain of ₹1,752 per 10 grams. Similarly, March silver futures rose ₹6,577 to ₹2,19,449 per kilogram, setting a new record.
Internationally, spot silver traded above $70 an ounce for the first time, while gold hovered near $4,500 an ounce. Traders are increasingly pricing in further interest-rate cuts by the Fed in 2026, which is supportive for non-yielding assets like gold and silver. A weaker US dollar, near its lowest level since October, has further boosted demand for dollar-denominated precious metals.
Gold rebounded strongly after retreating from its previous peak of $4,381 in October, and analysts at Goldman Sachs forecast continued gains in 2026, with a base-case scenario of $4,900 per ounce and potential upside risks.
Geopolitical developments, including rising US-Venezuela tensions and renewed oil blockades, are adding to market uncertainty and fueling demand for safe-haven assets. Both gold and silver are on track to register their largest annual gains since 1979, with gold up roughly 80% in 2025 and silver surging around 150%, driven by central bank purchases, inflows into ETFs, speculative trading, and lingering supply constraints.
World Gold Council data indicate that holdings in gold-backed ETFs have consistently increased throughout 2025, supporting the bull run. Market participants also cite concerns over currency debasement and sovereign debt as key factors sustaining investor interest in precious metals.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers are advised to consult qualified financial professionals before making any investment decisions related to gold, silver, or other commodities. Precious metal prices are subject to market risks and can fluctuate rapidly.
