In a volatile final trading session of the year, silver prices on the Multi Commodity Exchange (MCX) witnessed a significant correction. However, this pullback does little to overshadow what has been a historic, record-breaking annual rally for the white metal.
A Sharp Drop on the Final Day
On Wednesday, December 31, 2025, the silver rate on MCX opened with a steep decline of 6%, trading at ₹2,35,952 per kilogram. This marked a notable retreat from the record-breaking highs scaled earlier in the week. The move was part of a broader profit-booking trend across precious metals, following a blistering rally that characterized much of the month and the year.
Globally, spot silver mirrored this weakness, slipping 1.6% to $75.09 per ounce. This represented a pullback from the all-time peak of $83.62 per ounce it had touched just two days earlier, on Monday, December 29, underscoring the heightened volatility in the market.
Historic Annual Gains Remain Intact
Despite the year-end sell-off, the broader narrative for silver in 2025 remains overwhelmingly positive. The metal is firmly on track to register its best annual performance ever, with an astonishing surge of nearly 160% (157% as per the headline). This phenomenal rally has dwarfed all previous yearly gains, making 2025 a landmark year for silver investors.
The precious metals complex has experienced sharp whipsaw movements throughout December, with prices repeatedly hitting new record highs before investors opted to lock in profits from the extraordinary rally.
Other Precious Metals Also Retreat
The corrective pressure was not confined to silver. Other key precious metals also traded lower on Wednesday's session:
- Gold: Spot gold was down 0.3% at $4,334.20 per ounce. This followed its own record high of $4,549.71 per ounce achieved the previous Friday.
- Platinum: Platinum prices saw a sharper decline, with spot platinum falling 3.4% to $2,123.55 per ounce. Like silver, it had reached an all-time peak of $2,478.50 on Monday. Despite the drop, platinum is also headed for its best year ever, boasting gains of 135% so far in 2025.
- Palladium: Palladium retreated by 1.6% to $1,584.67 per ounce. For the year, the metal was set to close with a impressive gain of 74%, marking its strongest annual performance in nearly 15 years.
The simultaneous pullback across the board highlights a market-wide consolidation phase as traders square off positions before the year closes. The dominant theme, however, remains the unprecedented annual gains that have redefined performance benchmarks for the entire precious metals sector.
