Precious metals continued their spectacular rally on Friday, December 26, marking a fourth consecutive session of record-breaking gains. The surge was fueled by robust demand for safe-haven assets, underpinned by expectations of interest rate cuts from the US Federal Reserve and escalating geopolitical tensions worldwide.
Domestic Markets Touch Historic Peaks
On the Multi Commodity Exchange (MCX), gold futures for February delivery climbed another 1% to reach an unprecedented peak of ₹1,39,550 per 10 grams. This remarkable ascent brings the yellow metal tantalizingly close to the psychological milestone of ₹1.4 lakh. The rally represents the fourth straight day of record highs for gold, contributing to a staggering month-to-date surge of 10% and an 81% rally for the year 2025.
Silver, often called gold's more volatile sibling, displayed even more explosive momentum. March futures on MCX advanced by ₹11,457 per kilogram, or 5.1%, to hit a historic high of ₹2,35,247. This leap has propelled silver's year-to-date gains to an astonishing 167%, significantly outpacing gold's performance.
Global Rally Envelops All Precious Metals
The bull run was not confined to Indian markets. Internationally, spot silver breached the $75 per ounce barrier for the first time ever, reaching $75.64. Simultaneously, spot gold scaled a fresh record high of $4,530.60 per ounce.
The rally extended to other members of the precious metals family. Spot platinum rose 9.3% to $2,465.20 per ounce, after touching an all-time high earlier in the session. Palladium climbed 8.6% to $1,942, building on a three-year high achieved in the previous session. All four metals are poised to register weekly gains, with platinum recording its strongest weekly rise on record.
Key Drivers Behind the Meteoric Rise
Several powerful factors have converged to fuel this historic rally across the precious metals complex. Gold is on track for its biggest annual gain since 1979, driven by a combination of anticipated Federal Reserve policy easing, persistent geopolitical uncertainty, strong central bank purchasing, rising ETF holdings, and a broader trend of de-dollarization.
Silver's outperformance is attributed to structural market deficits, its recent listing as a U.S. critical mineral, and robust industrial demand. The industrial metals, platinum and palladium, have surged due to tight supply conditions, uncertainty surrounding tariffs, and a rotation of investment demand from gold. Year-to-date, platinum is up roughly 170%, while palladium has gained more than 90%.
Market sentiment remains heavily influenced by monetary policy expectations, with traders pricing in two potential US interest rate cuts next year. This environment is particularly supportive for non-yielding assets like gold and silver. Geopolitical tensions, including recent US actions in Venezuela and Nigeria, continue to amplify the flight to safety among global investors.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.
