Precious metals continued their spectacular bull run on Wednesday, December 24, with gold and silver prices scaling unprecedented heights for the third straight session. This relentless rally is fueled by a potent mix of geopolitical uncertainty and shifting global monetary expectations.
What's Driving the Precious Metals Boom?
Renewed tensions between the United States and Venezuela have sent investors scrambling for the safety of gold and silver. Simultaneously, the US dollar has weakened as markets anticipate further interest rate cuts by the Federal Reserve in the coming year. A softer dollar makes dollar-denominated assets like gold cheaper for international buyers, boosting demand.
On the Multi Commodity Exchange (MCX), the February gold futures contract soared by ₹322 to settle at a historic peak of ₹1,38,676 per 10 grams. This remarkable climb represents an 8% gain for December and a staggering 80% increase year-to-date.
Silver mirrored the bullish sentiment. The March futures contract for silver jumped by ₹4,777 per kilogram to a new high of ₹2,24,430, inching tantalizingly close to the ₹2.25 lakh mark. Both metals are now poised to register their most impressive annual performance since 1979.
Platinum and Palladium Join the Rally
The surge was not confined to gold and silver. The platinum group metals also witnessed explosive growth in 2025. Spot platinum prices blasted past $2,300 per ounce to set a new record at $2,378, marking a 3.4% single-day gain.
Platinum's surge, which has seen it gain twice as much as gold this year, is underpinned by tight supply, rising investment interest, and some investors rotating out of gold. With a 162% annual advance, platinum is seeing its biggest yearly jump since at least 1987.
Palladium, too, rallied by 4% to reach $2,022 per ounce, its highest level in three years, taking its year-to-date gains to 121%. A key factor supporting both platinum and palladium is a recent European Commission proposal to abandon a planned 2035 ban on combustion-engine cars. Both metals are critical components in automotive catalytic converters used to control emissions.
Adding to the supply-side pressure, ongoing disruptions in South Africa, the world's top platinum producer, have contributed to a third consecutive annual market deficit for the metal.
Analysts' Outlook and Key Price Levels
Market experts believe the bullish fundamentals remain intact. Rahul Kalantri, VP Commodities at Mehta Equities, pointed to sustained safe-haven demand during the holiday-shortened week and speculation about a potential change in the US Fed Chairmanship in January as supportive factors.
He identified immediate support for gold at ₹1,36,550–1,35,710 and resistance at ₹1,38,650–1,39,470. For silver, support is seen at ₹2,18,150–2,16,780, with resistance at ₹2,21,810–2,22,970.
Ponmudi R, CEO of Enrich Money, provided a more aggressive outlook. He stated that a decisive breakout above ₹1,38,500 could propel gold towards ₹1,40,000–1,45,000, with immediate support at ₹1,36,000–1,35,000. For silver, he noted strong demand between ₹2,15,000–2,17,000. "A convincing breakout above ₹2,23,000 could trigger the next leg of the rally toward ₹2,25,000–2,29,000, opening the door for fresh record highs," he added.
Disclaimer: This article is for informational purposes only. The views and recommendations above are those of individual analysts and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
