After months of impressive rallies and record-high prices, gold and silver wrapped up 2025 on a subdued note as investors opted to cash in their profits. On December 31, silver futures for March 2026 experienced a significant sell-off, plummeting 6% to Rs 2,35,952 per kg on the MCX-a dramatic loss of Rs 15,060 in just one session. Meanwhile, February 2026 gold futures saw a slight decline, dipping 0.4% to Rs 1,36,124 per 10 grams. Silver, which had recently hit all-time highs, faced a more profound correction compared to gold, following a robust rally earlier in the week.
In the previous trading session, both metals had bounced back sharply from intraday lows, driven by renewed safe-haven demand. Gold futures for February had surged 1.28% to close at Rs 1,36,666 per 10 grams, while silver futures had skyrocketed 11.84% to Rs 2,51,012 per kg. However, as the year drew to a close, global markets adopted a cautious stance. International gold and silver prices also declined, with traders taking profits near peak levels. Spot gold edged down 0.3% to approximately $4,334 an ounce, after reaching a record high of $4,549.71 last week. Concurrently, US gold futures for February delivery dropped 1% to $4,346.50 an ounce. Despite the late pullback, both precious metals are poised to conclude 2025 with unprecedented annual gains.
Investor sentiment was further dampened by geopolitical developments, including allegations that Ukraine conducted a drone strike on the President’s residence, diminishing hopes for a swift peace agreement. Reports of US airstrikes on a Venezuelan dock and heightened military activity from China near Taiwan also heightened demand for gold and silver, which are traditionally viewed as safe havens during times of uncertainty.
Looking ahead, Manoj Kumar Jain of Prithvifinmart Commodity Research shared insights with ET on the short-term outlook for bullion prices, suggesting they remain supported by ongoing geopolitical tensions. However, he warned that minutes from the recent US Federal Reserve meeting indicated a diminished likelihood of aggressive interest rate cuts in 2026, which could cap further gains in precious metal prices. Additionally, the US Dollar Index remained stable at around 98.28, up 0.04%, potentially affecting gold’s upward momentum.
Jain outlined critical technical levels for traders on the MCX. For gold, support exists between Rs 1,35,200 and Rs 1,34,000, while resistance is anticipated at Rs 1,37,700 to Rs 1,39,200. In terms of silver, support levels are seen between Rs 2,40,000 and Rs 2,28,000, with resistance projected in the Rs 2,62,000 to Rs 2,75,000 range. He advised investors to await clearer price stability before pursuing new positions and emphasized the importance of avoiding short selling amid the current volatility.
In summary, as gold and silver navigate a complex landscape of market fluctuations and geopolitical tensions, investors are urged to proceed with caution while keeping a close eye on technical indicators and global events.
(Disclaimer: Recommendations and views on the stock market, other asset classes, or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
Original Source: https://timesofindia.indiatimes.com/business/india-business/silver-price-crash-today-white-metal-plunges-rs-15000-whats-the-outlook/articleshow/126264595.cms
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Publish Date: 2025-12-31 11:26:00
