The prices of silver and gold extended their record-breaking rally on Wednesday, December 24, scaling unprecedented peaks as investors flocked to safe-haven assets amid global uncertainties and expectations of easier monetary policy in the United States.
Metals Soar to Unprecedented Highs
Spot silver prices, which had first crossed the $70 per ounce mark on Tuesday, climbed another 0.7% to set a fresh record at $71.9175. In a parallel move, spot gold rose 0.8% to $4,513.87 an ounce, marking its first-ever breach above the $4,500 level and continuing a three-day winning streak. Palladium also joined the party, jumping over 3% to $2,365.72.
In the Indian domestic market, the frenzy was equally pronounced. MCX silver March futures skyrocketed nearly 2% to an all-time high of ₹2,23,742 per kilogram. Similarly, MCX gold February futures advanced by 0.40% to a historic peak of ₹1,38,428 per 10 grams.
What's Fueling the Precious Metals Boom?
Analysts point to a confluence of factors driving this historic rally. Rising geopolitical tensions, particularly involving Venezuela where the US has blocked oil tankers, have heightened demand for traditional safe havens. This is compounded by a weakening US dollar index, which makes dollar-denominated metals cheaper for holders of other currencies.
The primary catalyst, however, is the growing market conviction that the US Federal Reserve will implement further interest rate cuts next year, following three consecutive reductions in 2024. Lower interest rates diminish the opportunity cost of holding non-yielding assets like bullion, making them more attractive.
Silver's performance has notably outpaced gold's, supported by heavy speculative inflows and ongoing supply disruptions at major trading hubs, a situation exacerbated by a historic short squeeze back in October. Year-to-date, gold has gained an impressive 76%, but silver has skyrocketed by over 140%, positioning both for their strongest annual performance since 1979 in the spot market.
Platinum Joins the Record-Breaking Party
It wasn't just silver and gold making headlines. Platinum, a metal crucial for automotive and jewellery industries, also hit a lifetime high, surging 4% to trade above $2,300 an ounce for the first time. Tight supply and high borrowing costs propelled its price higher for a tenth straight session, its longest winning streak since 2017.
Analysts' Outlook: How High Can Prices Go?
Market experts are bullish on the long-term trajectory but advise caution regarding short-term volatility. NS Ramaswamy, Head of Commodity & CRM at Ventura, believes silver has the potential to reach $100 per ounce (approximately ₹3 lakhs per kg) by 2026. He highlights silver's evolving role as a critical "next generation metal" with expanding applications in green energy and digital transformation sectors.
However, Ramaswamy also warned that past market cycles indicate sharp rallies are often followed by significant corrections, noting silver's historical susceptibility to extreme boom-and-bust phases.
Brokerage firm Axis Direct noted that silver's exceptional run in 2025 follows a strong 2024, resulting in its biggest annual gain since 1979. The firm stated that silver has decisively broken out of a multi-year consolidation and is now in the early stages of a powerful structural uptrend. They advise investors to use any price dip towards the ₹1,70,000–₹1,78,000 range for phased accumulation, setting a 2026 target of ₹2,40,000 per kg ($76-$80 per ounce).
Axis Direct emphasized a fundamental shift, stating, "The silver market is undergoing a historic repricing event driven by chronic supply deficits, industrial scarcity, and a weakened correlation with gold." They project the market deficit will exceed 100 million ounces in 2026.
For gold, Jateen Trivedi, VP Research Analyst at LKP Securities, predicts the bullish trend will remain intact as long as prices stay above ₹1,32,000. He views any short-term pullbacks as corrective moves rather than a reversal of the primary uptrend.
Disclaimer: The views and recommendations expressed are those of individual analysts or broking companies. Investors are advised to consult certified experts before making any investment decisions.
