Silver prices extended losses on Wednesday, marking the final trading session of 2025, as investors booked profits after the white metal delivered a historic rally this year.
On the Multi Commodity Exchange (MCX), silver prices plunged 7.5%, or more than ₹18,000 per kg, to settle at ₹2,32,228 per kg. In the international market, COMEX silver hovered near the $71 per ounce mark after touching an intraday low of $70.315, reflecting a sharp 9% decline from the previous session’s close.
Gold prices also faced selling pressure. MCX gold slipped a little over 1%, falling by ₹1,550 to ₹1,35,116 per 10 grams.
Despite the recent correction, 2025 has been an exceptional year for precious metals. Silver is heading towards its strongest annual performance on record, gaining nearly 150% during the year, while gold has surged around 65%.
The rally was driven by a mix of persistent geopolitical risks, expectations of a softer US interest rate environment, continued central bank buying, and strong inflows into exchange-traded funds. Silver also benefited from supply constraints, low inventories, and rising demand from both industrial applications and investors, underlining its growing strategic importance globally.
Further support came from the US Federal Reserve’s December policy meeting minutes, which indicated that additional rate cuts could be considered if inflation continues to cool, although policymakers remain divided on the timing and extent of any easing.
Geopolitical uncertainty also fuelled safe-haven demand throughout the year. Ongoing tensions related to the Russia–Ukraine conflict, instability in the Middle East, and strained relations between the US and Venezuela kept investor interest in gold and silver elevated.
After the sharp rally followed by a swift sell-off, silver prices have now entered a phase of heightened volatility, with market participants closely tracking global price levels to assess whether the metal stabilises or sees further consolidation in the near term.
Disclaimer: Commodity prices are volatile and subject to market risks. This article is for informational purposes only.
