Gold and silver prices traded lower during the final session of 2025, yet both precious metals are on track for their biggest annual surge in over four decades.
Gold February futures slipped ₹1,825 per 10 grams to the day’s low of ₹1,34,841, though the month-to-date return still stood at 7%. As of 8:00 PM, prices were quoted 0.74% lower at ₹1,35,650.
Silver prices fell even more sharply, with March futures on ₹18,784 per kilo to the day’s low of ₹2,32,228″>MCX plunging ₹18,784 per kilo to the day’s low of ₹2,32,228. The metal witnessed extreme volatility recently, surging ₹26,853 on Tuesday, a day after falling ₹15,358.
Both metals remain volatile following a prolonged bull run, yet they are poised for their best year since 1979.
The rally has been supported by strong demand for safe-haven assets amid mounting geopolitical risks and successive US Federal Reserve interest rate cuts, which also weakened the US dollar, making the commodities cheaper for holders of other currencies.
Earlier this week, silver prices crossed the ₹2.5 lakh mark for the first time, hitting a fresh record peak of ₹2,54,147 per kilo, while gold prices also crossed ₹1.4 lakh per 10 grams to reach a new peak of ₹1,40,465 on MCX.
Gold and silver rally sparks historic gains across precious metals
MCX gold has recorded a blistering 76.7% rally in 2025, driven by robust inflows from retail investors and institutional money managers into bullion-backed exchange-traded funds, while central banks continued a years-long buying spree.
Silver has posted gains of nearly 170.70% this year, propelled by strong industrial demand, its recent classification as a US critical mineral, and mining disruptions in silver-rich nations, leading to a massive surge in prices.
The extraordinary rally in both metals not only surprised global investors but also prompted analysts to revise their price forecasts multiple times, as previous targets were surpassed earlier than anticipated.
Other precious metals, such as platinum and palladium, are also set to close 2025 with strong returns. Spot platinum has advanced 124%, marking its largest annual gain since at least 1987.
The rally was supported by tight supply conditions, growing investment demand, and a rotation from gold. Meanwhile, palladium prices have recorded year-to-date gains of 78%.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
