On December 24, 2025, silver prices have surged to a fresh record high, while gold is trading at a record ₹1,39,000 in India.

Silver's Record-Breaking Rally

Silver prices climbed to a new all-time high of $70 per ounce. The metal is up over 140% year-to-date, marking its best annual performance since 1979. On the Multi Commodity Exchange (MCX), silver futures surged to a peak of ₹2,23,359 per kilogram before settling slightly lower at ₹2,22,500 per kilogram. This rally has pushed silver past its inflation-adjusted peak from 1980.

Several factors are contributing to silver's price surge:

• Geopolitical Tensions: Escalating geopolitical tensions, including US enforcement actions against Venezuelan tankers and PDVSA's struggles after a cyberattack, have boosted silver's appeal as a safe-haven asset.
• Strong Industrial and Investment Demand: Robust industrial demand, coupled with increasing investment, is supporting silver's long-term fundamentals. Silver is used in various industrial applications, including electronics, medical manufacturing, and green technologies.
• Anticipation of Interest Rate Cuts: Traders are pricing in potential interest rate cuts by the US Federal Reserve in the coming year, further fueling the rally.
• Weakening Dollar: A weakening US dollar makes silver cheaper for overseas buyers, increasing demand and pushing prices higher.

Gold's Steady Climb

Gold prices have also reached record levels, trading at ₹1,39,000 in India. In the international market, gold surpassed $4,500 per ounce. This surge is attributed to expectations of continued interest rate cuts by the Federal Reserve and heightened tensions between the United States and Venezuela.

Factors Influencing Gold Prices:

• Safe-Haven Demand: Gold is considered a safe-haven asset during times of economic and political uncertainty. Geopolitical risks and concerns about the global economy are driving investors towards gold.
• Inflation Hedge: Gold is often used as a hedge against inflation, preserving wealth during periods of rising prices.
• Central Bank Purchases: Central banks are increasing their gold reserves to diversify their holdings and hedge against economic instability.
• Monetary Policy: Expectations of interest rate cuts generally support gold prices, as gold doesn't pay a dividend and becomes more attractive when rates are lower.

Regional Price Variations

Gold prices vary across different cities due to factors such as local taxes, transportation costs, and demand.

Market Outlook

The outlook for silver and gold remains positive, with analysts expecting prices to remain strong in the coming year. Silver is expected to trade at $67.33 USD/t. oz by the end of this quarter, and $73.56 in 12 months time. The combination of strong industrial demand, safe-haven buying, and expectations of accommodative monetary policy is expected to continue supporting prices. However, it is unlikely that silver will repeat the 130% price gain seen in 2025.