Market Price Fluctuations
Throughout December 2025, the prices of gold and silver saw notable fluctuations. On December 30th, the rates were closely observed, with city-specific
prices available for those looking for deals. However, by December 31st, a slight dip was observed in prices. Further analysis revealed that on December 29th, 2025, the market saw changes in MCX rates, impacting the precious metals. Notably, the New Year brought some relief for buyers as prices decreased. The price of 24K gold dipped by ₹131, and 22K gold slipped by ₹120 per gram, reflecting the immediate impact of market changes during the period.
Kerala's Gold Surge
One of the standout trends during the period was the surge in gold prices in Kerala. The yellow metal impressively crossed ₹1 lakh per sovereign in the state, with the price per gram reaching ₹12,700. This indicates a strong regional demand or external influences affecting the local market. This price increase in Kerala highlights the diverse trends across different regions of India, adding a layer of complexity to the overall market analysis. This also underscores the significance of considering local market dynamics when assessing precious metal investments.
External Economic Factors
Several economic reports and events influenced the precious metals market. The Reserve Bank of India (RBI) reported that the Indian economy's resilience was driven by strong domestic demand and stable inflation. This broader economic context provided a backdrop for the fluctuations in gold and silver prices. Additionally, news related to other sectors, such as Hindustan Copper's performance amid a metals rally, could have indirectly impacted investor sentiment towards precious metals. These macroeconomic indicators help understand how larger economic trends interrelate with and influence the valuation of gold and silver.
Nifty and Market Outlook
Market analysis included projections for the Nifty index. There was speculation that the Nifty could hit 29,150 by December 2026. This potential growth in the stock market can indirectly impact the attractiveness of precious metals as an investment. Investors often weigh various asset classes and market forecasts when deciding on investment strategies. Therefore, the outlook on the stock market is another factor to consider alongside direct price movements of gold and silver. These comparisons are critical for anyone making investment decisions.
Fuel and Transportation Costs
While the primary focus was on gold and silver, related financial changes were also noteworthy. On January 1, 2026, fuel updates indicated a slight increase in petrol prices, whereas diesel rates remained steady across India. Simultaneously, there were also changes in transportation costs, with train ticket prices rising. The minimum fare for Express trains increased from ₹30 to ₹35, and Superfast fares rose to ₹50. These parallel changes in fuel and transportation expenses reflect how the overall financial landscape affects everyday consumers and the broader economy, providing a context for understanding the precious metals market's movements.
IGL Cuts Cooking Gas
Adding to the financial updates for the period, there was positive news regarding piped cooking gas prices. IGL (Indraprastha Gas Limited) announced cuts in piped cooking gas prices, providing a financial benefit for households. This aspect underlines the multifaceted nature of market dynamics, where varying factors influence the financial conditions of the populace. These cuts offered some reprieve to consumers in contrast to other cost increases, like those in transport and fuel, providing a comprehensive outlook on the financial trends during that time.
