On December 22, 2025, gold and silver prices surged, hitting record highs, largely driven by growing expectations of rate cuts by the US Federal Reserve. As traders reacted to the possibility of these rate cuts, both precious metals saw significant jumps, with gold rising 1.21% to ₹1,35,824 per 10 grams, and silver skyrocketing 2.67% to reach an all-time high of ₹2,13,999 per kg.
This rise in the prices of gold and silver comes at a time when geopolitical tensions and investment inflows have been reinforcing demand for safe-haven assets. Gold crossed the $4,400/ounce mark for the first time, while silver rose by 3.3%, confirming its position as one of the best-performing assets this year.
Gold and Silver’s Stellar Year
Gold has gained a staggering 67% this year, shattering records and surpassing significant price milestones. Experts are predicting that it could see its largest annual gain since 1979. Similarly, silver has seen an astounding 138% increase year-to-date, vastly outperforming gold. This surge is underpinned by robust investment and persistent supply constraints, alongside strong demand for precious metals in geopolitical uncertainty.
Global Cues and Market Sentiment
The market sentiment has been driven by a strong expectation of future rate cuts by the US Federal Reserve, which would make non-yielding assets like gold and silver more attractive. The US dollar’s weakness and the ongoing global economic uncertainty are also contributing to the positive outlook for these metals.
In response to these dynamics, analysts suggest that while the current bullish trend is favorable, investors may need to tread carefully as the market nears the end of the year. With gold already up 4% this month, some caution is advised.
Local Price Variations Across Indian Cities
Silver rates in India, reflective of MCX market levels, also saw significant variations depending on local jewellery margins and logistics. In cities like Delhi, Mumbai, and Chennai, the prices of gold and silver aligned closely with MCX trends, with minor fluctuations due to local factors.
The Road Ahead for Precious Metals
Looking ahead, market watchers are closely monitoring the Fed’s monetary policy decisions, which will likely influence the direction of gold and silver prices in the coming months. With interest rates expected to remain low, and global uncertainty on the rise, gold and silver will continue to be safe havens for investors.
