Silver and Gold Prices Reach New Heights Amid Market Turbulence

Silver prices have soared to unprecedented levels, with futures trading on the Multi-Commodity Exchange (MCX) reaching ₹2,35,247 per kilogram on Friday, December 26. This marks a significant increase of over 12% over the past week, continuing a trend of rising prices for the precious metal.

The Mini Silver Futures Contracts, set to expire on February 27, 2026, also achieved a record high of ₹2,35,750 per kilogram, up from ₹2,24,310 the previous day. As of 8:14 PM IST on Friday, these futures were trading at ₹2,33,354 per kilogram, with each contract representing 5 kilograms.

In the international market, spot silver reached a milestone by surpassing $75 per ounce, climbing by $3.72, or 5.18%, to settle at $75.63 per ounce. This surge has been attributed to strong demand, particularly from the solar energy sector, coupled with supply constraints. The United States has classified silver as a 'critical mineral', while China, one of the largest exporters, has implemented export restrictions affecting the metal's availability.

Domestic silver prices also reflected this upward trend, with prices in New Delhi rising by ₹9,350 to hit ₹2,36,350 per 10 grams, as reported by the All India Sarafa Association through the Press Trust of India (PTI).

Gold Prices Rise

Gold is experiencing a parallel surge, with futures for February delivery reaching an intraday high of ₹1,39,851 per 10 grams on the MCX. As of 8:14 PM IST, gold contracts for February were trading at ₹1,39,588 per 10 grams, representing a 1.08% increase. Over the course of the week, gold prices have increased by 4%.

The rise in gold prices has been spurred by growing geopolitical tensions, particularly between the United States and Venezuela, as well as military actions in Nigeria. Additionally, the ongoing conflict between Russia and Ukraine has heightened market uncertainty. These factors have led investors to seek refuge in gold, traditionally viewed as a safe-haven asset during turbulent times.

Expectations regarding potential interest rate cuts by the US Federal Reserve in 2026 have also contributed to the rally in gold prices, as the dollar index has depreciated by approximately 1.7% this December. This trend follows a pattern of weak performance for the dollar during the final month of the year, according to a report from the India Bullion and Jewellers Association.

In the domestic market, gold prices (99.9% purity) climbed by ₹1,500 to reach a new record of ₹1,42,300 per 10 grams, inclusive of all taxes. This represents a notable increase from ₹1,40,800 per 10 grams in the previous session. Year-to-date, gold prices have surged by ₹63,350, equating to an 80.24% increase from ₹78,950 per 10 grams recorded on December 31, 2024. Globally, spot gold also rose, climbing by $50.87, or 1.13%, to a new lifetime high of $4,530.42 per ounce.

The significant movements in both silver and gold prices reflect a combination of market dynamics and geopolitical factors, prompting investors to adapt their strategies in response to evolving conditions.