Gold and silver prices continued to trade higher for the second consecutive session on Friday, 2 January, as demand for safe-haven assets strengthened following the late-year crash amid improving expectations of additional rate cuts from the US Federal Reserve and rising geopolitical risks.
The February gold futures contract on MCX opened higher at ₹1,36,999 per 10 grams, compared to the previous close of ₹1,35,804, and scaled to the day’s high of ₹1,37,098.
By 8:10 PM IST, MCX gold was trading ₹369, or 0.27%, higher at ₹1,36,173 per 10 grams. The spot gold price also rises 1.8% to $4,402 per ounce.
Silver prices also resumed higher following a muted close during Thursday’s session. The ₹9,126 per kilogramme”>silver March futures contract on MCX soared by ₹9,126 per kilogramme, reaching the day’s high of ₹2,44,999 from the previous close of ₹2,35,873.
Other precious metals such as platinum and palladium were also trading higher, rallying 4.76% and 3.7%, respectively.
Earlier this week, all precious metals came under sharp profit booking after CME raised margins on precious metal futures. Nevertheless, 2025 remained a banner year for all the metals.
Silver, gold, palladium deliver record 2025 gains
Both gold and silver recorded their best year since 1979, with silver leading by posting 147% annual gains, driven by its designation as a critical US mineral, supply shortages, and low inventories amid rising industrial and investment demand.
Gold also surged 64% in 2025, driven by Fed rate cuts, geopolitical tensions, strong central bank buying, and rising ETF holdings. Platinum posted a 126% surge in 2025, its best in 15 years, while Palladium rallied 81%.
On the physical demand side, gold traded at a premium in top hubs in India and China for the first time in about two months, as a recent correction from all-time highs helped lift retail demand, Reuters reported.
Falling dollar continues to support precious metals
Meanwhile, the US dollar index, which measures the currency against six major peers, continued to trade with modest gains at 98.43 after recording its steepest drop in eight years in 2025, amid rising bets on US Federal Reserve cuts.
This continued to support the rally in precious metals, as they remain relatively cheap for holders of other currencies, given that metals are priced in dollars.
Minutes from the FOMC’s December meeting showed growing openness among policymakers to easing monetary policy if inflation continues to cool, although officials remained divided over the timing and scale of potential rate cuts.
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