Gold, silver prices scale new peaks in India: What’s keeping rates elevated

Gold and silver prices extended their record-breaking rally in the Indian market on Wednesday (December 24), tracking sharp gains overseas amid expectations of easier US monetary policy and heightened geopolitical risks.

Gold futures for February delivery rose for the third consecutive session on the Multi Commodity Exchange (MCX), climbing ₹791, or 0.57%, to hit an all-time high of ₹1.38 lakh per 10 grams. The yellow metal also crossed the psychological $4,500-per-ounce mark in international trade.

Gold crosses ₹1.38 lakh per 10 grams in India, silver at ₹2.23 lakh per kg

Silver futures continued their strong upward momentum for a fourth straight day. The March 2026 contract surged ₹4,234, or nearly 2%, to touch lifetime high of ₹2.23 per kilogram on the MCX.

Global markets mirrored the domestic trend. On the Comex, gold futures advanced for the fourth session

in a row, gaining over $49 to scale a new record of $4,555 per ounce. Silver futures for March 2026 jumped more than 2 per cent to reach an all-time high of $72.75 per ounce.

Market participants attributed the rally to sustained safe-haven demand as investors priced in the possibility of further rate cuts by the US Federal Reserve.

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, easing inflation and signs of moderation in US employment conditions have kept expectations of monetary easing alive, even as policymakers remain divided.

Trivedi also pointed to rising geopolitical tensions, particularly between the US and Venezuela, which have lifted risk aversion across global commodity markets. While US economic growth remained resilient in the third quarter, stronger GDP data triggered intraday volatility without altering the broader bullish trend in precious metals, he said.

Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA), noted that silver has followed gold, supported by expectations of robust industrial demand, even as volatility remains a key feature.

Rahul Kalantri, Vice President – Commodities at Mehta Equities, added that safe-haven buying remained intact during the holiday-shortened week, supported by geopolitical uncertainties and political developments in the US.

Gold has gained nearly 70% so far this year and is on course for its strongest annual performance since 1979, supported by steady central bank purchases and sustained inflows into gold-backed funds, analysts said.

Silver, meanwhile, has benefited from both investment demand and its dual role as an industrial metal, amplifying price moves during periods of market uncertainty.