On the last trading day of 2025, both gold and silver took a break after a scorching surge over the majority of the year. Gold prices for February 2026 down 0.4% to Rs 1,36,124 per 10 grams on Wednesday, while silver futures for March 2026 fell 6% to Rs 2,35,952 per kilogram, losing Rs 15,060.
Profit Booking After Record Highs
The decline, which is especially noticeable in the case of silver, follows a surge to all-time highs and is indicative of aggressive profit-booking.
On Wednesday, December 31, traders locked in gains close to all-time highs, which caused gold and silver prices to slightly decline internationally. Both precious metals are still on pace to conclude 2025 with unprecedented yearly gains despite the short-term downturn.
International Market Movement
After reaching a record high of $4,549.71 last week, spot gold fell 0.3% to around $4,334 per ounce in early Asian trading. In the meanwhile, US gold futures for delivery in February dropped 1% to $4,346.50 per ounce.
Both metals had concluded on a high note in both local and international markets during the previous session.
Strong Previous Session Close
Silver March futures rose 11.84% to finish at Rs 2,51,012 per kg on the MCX, while gold February futures ended at Rs 1,36,666 per 10 grams, up 1.28%. As international concerns increased, safe-haven purchasing surfaced, causing prices to rise substantially from intraday lows.
After Russia claimed that a Ukrainian drone had attacked the President’s mansion, worries grew and prospects for a short-term peace deal faded.
Geopolitical Tensions Support Bullion
The demand for gold and silver as conventional safe-haven assets was increased concurrently with news of US airstrikes on a Venezuelan dock and a Chinese military drill in seas near Taiwan.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, current geopolitical tensions are bolstering bullion’s short-term gains.
Fed Policy Impact
However, the likelihood of significant rate reduction in 2026 was reduced in the US Federal Reserve’s meeting minutes, which were made public on Tuesday. This might limit future increases in the price of precious metals.
As of 9:11 a.m. IST on Wednesday, December 31, the spot price of silver was $72.54, down 4.90 percent for the day and up 0.52 percent for the week.
Silver Price Correction
After hitting an all-time high of $82.95 on December 29, the price of the precious metal has dropped by almost $10.
On Wednesday, the domestic silver futures market on MCX began trading at Rs 2,35,952 per kilogram of 999 purity.
That is a 6% decrease from its previous closing of Rs 2,51,012.
MCX Performance
After peaking at Rs 2,54,783 on Monday, the price has dropped by almost 8%.
Silver is down; why?
Silver had the most volatility, according to the August 30 Augmont Bullion report.
The CME’s decision to increase overnight margin requirements to $25,000—the second increase this month—made silver’s decline more severe.
Margin Hike Effect
This change most likely prompted leveraged traders to liquidate their positions, which led to position closures regardless of specific market outlooks.
With a little increase of 0.04%, the US Dollar Index remained stable at 98.28, providing some opposition to the gold rise.
How to exchange gold
For gold and silver on the MCX, Manoj Kumar Jain recommended the following levels of support and resistance:
Gold: Rs 1,35,200–1,34,000 is support; Rs 1,37,700–1,39,200 is resistance.
Silver: Rs 2,40,000–2,28,000 is support; Rs 2,62,000–2,75,000 is resistance.
Trading Strategy Advice
In light of the present market volatility, Jain recommended against short selling and to wait for some price stability before opening new positions.
Physical market pricing for gold
Delhi’s current gold price
In Delhi, pure gold (24 carat) costs Rs 1,10,752 per 8 kilos, while standard gold (22 carat) costs Rs 1,02,848 per 8 grams.
Mumbai’s current gold price
In Mumbai, pure gold (24 carat) costs Rs 1,09,152 per 8 kilos, while standard gold (22 carat) costs Rs 1,01,360 per 8 grams.
Chennai’s current gold price
In Chennai, pure gold (24 carat) costs Rs 1,09,360 per 8 kilos, while standard gold (22 carat) costs Rs 1,01,512 per 8 grams.
Hyderabad’s current gold price
In Hyderabad, pure gold (24 carat) costs Rs 1,09,512 per 8 kilos, while standard gold (22 carat) costs Rs 1,01,744 per 8 grams.
Gold and silver see a thrilling conclusion to a successful year
Gold and silver prices are on pace to achieve their largest yearly increases since 1979 after a wild year.
This year, the price of gold increased by almost 60% to reach a new high of over $4,549 (£3,378) per ounce.
Year-End Price Snapshot
However, following Christmas, the price dropped to around $4,350 on New Year’s Eve.
Silver, which had reached an all-time high of $83.62 on Monday, was now trading at about $74 per ounce.
Drivers of the Rally
Expectations of more interest rate reductions, central banks’ purchases of gold, and investors’ purchases of so-called “safe haven” assets as a result of worries about international tensions and economic instability all contributed to this year’s advances.
According to Rania Gule of trading platform XS.com, “the interaction of numerous economic, investment, and geopolitical variables is seeing a considerable spike in gold and silver prices.”
Expert Outlook
She continued by saying that forecasts that the US Federal Reserve would lower interest rates once more in 2026 are the primary cause of the increases in precious metal prices.
According to the World Gold Council trade group, central banks all over the globe increased their stockpiles of gold by hundreds of tons this year.
Silver Supply Constraints
According to Daniel Takieddine, co-founder of the investment business Sky Links Capital Group, “supply tightness and industrial demand” have contributed to the increase in silver prices.
China, the second-largest producer of silver worldwide, has announced plans to limit the precious metal’s export.
China Export Restrictions
In an effort “to step up the preservation of resources and the environment,” China’s Ministry of Commerce put additional limitations on the export of silver, tungsten, and antimony in October.
Elon Musk, the CEO of Tesla, commented, “This is not good,” in response to a social media post on Chinese government limits on silver exports.
ETF Inflows and Outlook
Additionally, Mr. Takieddine emphasized the substantial sums of money that have entered the precious metals market via investments such as exchange-traded funds (ETFs).
ETFs are investment bundles that trade like individual stocks on a stock market.
Because investors are not need to hold actual bullion, they might be considered a handy method of trading precious metals.
According to Ms. Gule, she anticipates that gold prices would climb “at a more steady rate compared to the record highs recorded in 2025” in 2026.
Volatility Warning
According to Mr. Takieddine, silver may increase once again in the next year. However, he cautions that “sharper declines may follow rallies.”
Following a record surge, silver prices fall 8%, causing withdrawals from silver ETFs and a 2% decline in Hindustan Zinc shares.
Impact on Stocks and ETFs
Following a notable bull run, silver prices soared to new record highs before plummeting on December 31.
Shares of Hindustan Zinc and silver ETFs fell precipitously as a result of the decline in the precious metal.
Early on Wednesday, the Vedanta Group company’s shares dropped to Rs 611.05 a share.
Silver prices plummet
On the Multi Commodity Exchange of India (MCX), silver futures with a March expiration date fell more than 7% to Rs 2,32,228 a kilogram.
In the meanwhile, future contracts that expire in May dropped by around 8% to Rs 2,35,512 per kilogram.
Hindustan Zinc share price
Shares of Hindustan Zinc have increased by around 27% in the last month and more than 38% in 2025 so far.
The huge increase in silver prices was the primary cause of the recent share price jump.
The biggest producer of silver in India, Hindustan Zinc, produces refined silver that is at least 99.9% pure.
Therefore, the share price of Hindustan Zinc may have been affected by the decline in silver prices today.
The company now has a market capitalization of around Rs 2.60 lakh crore and a P/E ratio of over 26.
ETFs for silver
Silver exchange-traded funds (ETF) saw a significant reduction due to the decline in silver prices.
While Nippon India Silver ETF, Groww Silver ETF, HDFC Silver ETF, Mirae Asset Silver ETF, Kotak Silver ETF, and others plummeted by about 2 percent each, Aditya Birla Silver ETF and Axis Silver ETF plunged by more than 2 percent apiece.
Edelweiss Silver ETF, ICICI Pru Silver ETF, and Zerodha Silver ETF all had declines of around 1%.
