Silver rate today extended its record-breaking rally on Wednesday, December 24, touching yet another all-time high after gold prices scaled another peak, crossing the $4,500-an-ounce mark for the first time. The surge has been driven by rising tensions in Venezuela, a weaker dollar and expectations that the US Federal Reserve could deliver further interest-rate cuts. Another precious metal, Platinum also climbed to fresh lifetime highs during the session.
Spot silver, which moved past $70 an ounce for the first time on Tuesday, gained another 0.7% to hit a new record of $71.9175. Spot gold rose as much as 0.8% to $4,513.87, extending a three-day rally, while palladium jumped more than 3% to $2,365.72.
In the domestic market, MCX silver March contracts surged nearly 2% to a fresh high of ₹2,23,742 per kg. MCX gold February futures also advanced, rising 0.40% to a record ₹1,38,428 per 10 grams.
Rising geopolitical tensions in Venezuela, where the US has blocked oil tankers, along with a decline in the dollar index, has reinforced investor demand for safe-haven assets. Adding to the momentum, investors are hoping for another round of monetary easing by the US Federal Reserve next year after three consecutive US rate cuts.
Silver’s advance has outpaced gold, supported by speculative inflows and persistent supply disruptions across key trading centres following a historic short squeeze in October. On a year-to-date basis, gold has climbed 76%, while silver has surged over 140%, putting both metals on track for their strongest annual performance since 1979 in the spot market. Elevated central-bank buying and strong exchange-traded fund inflows have further fuelled the rally.
Platinum also hit an all-time high today, jumping 4% to trade above $2,300 an ounce for the first time. Tight supply conditions and historically high borrowing costs pushed the metal — widely used in automotive and jewellery applications — higher for a 10th consecutive session, marking its longest winning streak since 2017.
Silver, Gold Prices: How far can this rally go?
NS Ramaswamy, Head of Commodity & CRM at Ventura, said silver has the potential to climb to $100 an ounce — roughly ₹3 lakhs per kg — by 2026. He noted that the metal is increasingly emerging as a critical “next generation metal,” with expanding applications across sectors linked to the green energy shift and digital transformation over the next decade.
At the same time, Ramaswamy sounded a note of caution, pointing out that past market cycles show that sharp rallies are often followed by equally sharp corrections, with silver historically no stranger to extreme boom-and-bust phases.
Axis Direct said silver’s exceptional run in 2025 has come on top of an already strong 2024, with the metal posting its biggest annual gain since 1979 at more than 100%. The brokerage noted that silver has moved decisively out of a multi-year consolidation phase and is now entering the early stages of a strong structural uptrend.
The firm advised investors to use any correction toward the ₹1,70,000– ₹1,78,000 range for phased accumulation, while pegging a 2026 target of ₹2,40,000. Axis Direct also expects silver prices to move towards the $76–$80 range in the next phase.
Highlighting a sharp shift in underlying fundamentals, Axis Direct said the silver market is witnessing a significant repricing cycle. The brokerage said, “The silver market is undergoing a historic repricing event driven by chronic supply deficits, industrial scarcity, and weakened correlation with gold. With the market short by nearly 700 Moz between 2021 and 2025, the deficit is projected to exceed 100 Moz in 2026.”
For Gold
“Despite entering overbought territory after the recent sharp rally, the broader trend remains intact. As long as Gold prices sustain above the ₹1,32,000 zone, gold is likely to retain its bullish bias, with any short-term pullbacks being viewed as corrective rather than trend-reversing,” predicted Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
