Mumbai: Precious metals prices cooled off on the final trading day of the year as investors chose to book profits after a strong rally. Silver, which had touched record highs earlier, saw a sharp fall, while gold prices also moved slightly lower during morning trade.
Silver futures for March 2026 on the MCX dropped 4.63 percent to Rs 2,39,395 per kilogram. At the same time, gold futures for February 2026 eased 0.51 percent to Rs 1,35,973 per 10 grams.
Why Prices Fell Today?
The fall came mainly due to aggressive profit-booking. After rising sharply for most of 2025, traders decided to lock in gains. Despite the drop, market volatility remained high due to ongoing global tensions, which had earlier supported safe-haven buying.
Geopolitical issues such as US strikes on Venezuela’s dock facilities and Chinese naval exercises had boosted gold and silver prices earlier in the week. However, fresh buying slowed as investors became cautious.
A Strong Year for Silver and Gold
Even after the latest fall, 2025 has been an exceptional year for precious metals. Silver prices jumped nearly 24 percent in December alone and have risen about 135 percent over the past year. Analysts say tight supply, strong demand, and safe-haven interest supported prices.
Gold also delivered outstanding returns. Domestic spot gold prices are up more than 76 percent this year, while international gold prices have gained over 70 percent, marking the strongest annual performance since 1979.
Global Events Drive Volatility
According to market experts, gold and silver prices remained volatile as geopolitical tensions continued to rise. Issues like delays in the Russia-Ukraine peace process and concerns over global security pushed investors toward safer assets.
However, gains were limited after the US Federal Reserve’s policy meeting minutes reduced hopes of sharp interest-rate cuts next year. This made investors more cautious about taking fresh positions.
Outlook Going Ahead
Analysts believe silver prices now have key support levels around Rs 2,45,150–Rs 2,42,780, while resistance lies near Rs 2,54,810–Rs 2,56,970. Strong central bank buying, global uncertainties, and tight physical supply may continue to support prices, though short-term corrections cannot be ruled out.
