Precious metals glittered with unprecedented strength on Friday, as both gold and silver prices soared to record lifetime highs on domestic exchanges. The rally was fueled by a potent mix of investor sentiment seeking safety, expectations of monetary policy easing in the United States, and escalating geopolitical conflicts around the world.
Domestic Markets Shine with Historic Milestones
The buying frenzy was particularly evident on the Multi Commodity Exchange (MCX). Silver futures for the March 2026 contract spearheaded the charge, skyrocketing by Rs 8,951, or 4%, to settle at an all-time peak of Rs 2,32,741 per kilogram. This marked the fifth consecutive session of gains for the white metal, which has witnessed a staggering rise of Rs 29,176 (over 14%) since December 18.
Not to be outdone, gold also carved its name in the record books. After a holiday closure on Thursday for Christmas, MCX gold futures for February delivery extended their winning streak to a fourth session. The contract climbed by Rs 1,119, or 0.81%, to achieve a fresh lifetime high of Rs 1,39,216 per 10 grams.
Global Rally and Expert Analysis Behind the Surge
The bullish momentum found strong support in international markets. On the Comex exchange, gold futures for February delivery advanced by $58.8 (1.3%) to touch a new zenith of $4,561.6 per ounce. Silver futures for March delivery were even more spectacular, leaping by $3.81, or 5.31%, to a record $75.49 per ounce.
Explaining the powerful rally, Jigar Trivedi, Senior Research Analyst at Reliance Securities, pointed to dual catalysts. He stated that gold prices were driven higher by "safe-haven demand amid mounting geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve." He specifically highlighted investor focus on the US blockade of Venezuelan crude, the Russia-Ukraine war, and recent US military action against ISIS in Nigeria.
Trivedi further noted that financial markets are currently anticipating two quarter-point rate cuts by the Fed in the coming year, as inflation shows signs of cooling and the labour market softens, despite divided opinions among the central bank's officials.
Outlook: Can the Rally Sustain into 2026?
The remarkable performance this year sets a strong precedent. According to Trivedi, gold prices have surged more than 70% in 2024, marking their largest annual gain since 1979, bolstered by aggressive central bank purchases and consistent inflows into exchange-traded funds (ETFs).
Market experts believe the positive trend could extend into early 2026, supported by expectations of easing inflation, a potentially weaker US dollar, and persistent global risks. Manoj Kumar Jain of Prithvifinmart Commodity Research observed, "Gold is holding above the critical $4,500 level and could be eyeing $4,890, while silver looks steady above $70, eyeing $78, in the coming sessions."
He added that a general sense of risk aversion, prompting a shift away from volatile assets, continues to channel investments into precious metals, thereby keeping the bullish sentiment alive. Meanwhile, the US Dollar Index trading subdued near two-month lows around 97.91 provided an additional tailwind for dollar-priced bullion.
For the immediate domestic trajectory, Trivedi suggested that MCX gold February futures are likely to maintain a positive bias, with the level of Rs 1,39,000 per 10 grams acting as the next key resistance.
