Precious metals continued their spectacular rally, with gold and silver prices scaling unprecedented peaks during Wednesday's trading session on December 24. This marked the third straight day of record-setting performances for both commodities, driven by a potent mix of geopolitical uncertainty and shifting monetary expectations.
What's Fueling the Meteoric Rise?
Renewed tensions between the United States and Venezuela prompted investors to seek the safety of traditional haven assets like gold. Simultaneously, the U.S. dollar weakened as market participants grew more confident that the Federal Reserve would implement further monetary easing in the coming year. A softer dollar makes dollar-priced gold and silver cheaper for buyers holding other currencies, boosting international demand.
On the Multi Commodity Exchange (MCX), the February gold futures contract leaped by ₹322 per 10 grams to establish a fresh all-time high of ₹1,38,496. This impressive move has propelled gold's gains for the month to 8%, while the year-to-date surge now stands at a staggering 80%.
Silver mirrored this explosive trend. The March silver futures contract on MCX jumped by ₹4,777 per kilogram to touch a new peak of ₹2,24,430, inching tantalizingly close to the ₹2.25 lakh per kilo mark. Both metals are now poised to register their most significant annual gains since 1979.
Platinum and Palladium Join the Rally
The bull run was not confined to gold and silver. Other precious metals also witnessed extraordinary advances in 2025. Spot platinum prices vaulted past $2,300 per ounce to set a record high of $2,378, registering a 3.4% single-day jump. Platinum has skyrocketed by 162% this year, marking its largest annual advance since at least 1987.
Analysts attribute platinum's outperformance—it has gained twice as much as gold this year—to a combination of tight supply, rising investment interest, and some investors rotating funds from gold into platinum. Palladium was not left behind, rallying another 4% to a three-year high of $2,022, taking its yearly gains to 121%.
A significant demand-side boost came from Europe, where the European Commission recently proposed scrapping an effective 2035 ban on combustion-engine cars. This development is bullish for both platinum and palladium, as they are critical components in automotive catalytic converters that reduce harmful emissions.
Expert Views and Technical Outlook
Market experts highlighted the supportive environment for precious metals. Rahul Kalantri, VP Commodities at Mehta Equities, pointed to sustained safe-haven demand during the holiday-shortened week amid elevated geopolitical risks. He also noted that expectations surrounding a potential change in the U.S. Fed Chairmanship in January provided additional support.
Kalantri provided key technical levels: Gold finds immediate support in the ₹1,36,550–1,35,710 range, with resistance at ₹1,38,650–1,39,470. For silver, support is seen at ₹2,18,150–2,16,780, while resistance lies at ₹2,21,810–2,22,970.
Ponmudi R, CEO of Enrich Money, offered a bullish perspective. He stated that a clean breakout above ₹1,38,500 could accelerate gold prices toward the ₹1,40,000–1,45,000 zone, with immediate support at ₹1,36,000–1,35,000. Regarding silver, he observed, "Strong demand zones are visible in the ₹2,15,000–2,17,000 band. A convincing breakout above ₹2,23,000 could trigger the next leg of the rally toward ₹2,25,000–2,29,000, opening the door for fresh record highs."
Disclaimer: This article is for informational purposes only. The views and recommendations above are those of individual analysts and not of the publication. Investors are strongly advised to consult certified experts before making any investment decisions.
