On Friday, January 2, gold and silver prices increased for the second straight session as demand for safe-haven assets increased after the late-year slump due to growing geopolitical threats and better anticipation of more rate cuts from the US Federal Reserve.
Gold and Silver Prices Increase
Compared to the previous finish of ₹1,35,804, the February gold futures contract on MCX began higher at ₹1,36,999 per 10 kilos and reached the day’s high of ₹1,37,098.
MCX gold was up ₹369, or 0.27%, at ₹1,36,173 per 10 grams around 8:10 PM IST. Additionally, the current price of gold increases by 1.8% to $4,402 per ounce.
Silver Prices Follow Suit
After a quiet finish on Thursday, silver prices also started to rise again. The silver March futures contract on MCX increased by ₹9,126 per kilogramme, from the previous close of ₹2,35,873 to the day’s high of ₹2,44,999.
Palladium and platinum, two other precious metals, were also rising, up 3.7% and 4.76%, respectively.
💰 Gold Prices Rise
- MCX Gold (Feb Contract): Opened ₹1,36,999 per 10 grams, high ₹1,37,098
- Current MCX Price: ₹1,36,173 per 10 grams (+₹369 / +0.27%)
- Global Price: $4,402 per ounce (+1.8%)
- Reason: Safe-haven demand amid geopolitical concerns and Fed rate cut expectations
- Market Trend: Profit booking seen after CME margin increase
🥈 Silver & Precious Metals Rally
- MCX Silver (Mar Contract): ₹2,44,999 per kg (up ₹9,126)
- Other Metals: Palladium +3.7%, Platinum +4.76%
- Historic Gains 2025: Silver +147%, Gold +64%, Palladium +81%, Platinum +126%
- Premiums: Gold trading at premium in India & China due to retail demand
- Dollar Impact: Weak US dollar supports precious metal prices
- Outlook: Fed hints at potential rate cuts if inflation declines, boosting metals
Profit Booking and Market Trends
After CME increased margins on precious metal futures earlier this week, all precious metals saw substantial profit booking. All the metals, however, continued to have a great year in 2025.
Palladium, gold, and silver provide historic gains in 2025.
Historic Gains in Precious Metals
Due to supply limitations, low inventories, and silver’s status as a vital US commodity, both gold and silver had their greatest year since 1979. Silver’s gains were 147%.
Fed rate reduction, geopolitical unrest, robust central bank purchases, and growing ETF holdings all contributed to the 64% increase in gold prices in 2025. Palladium increased by 81% in 2025, while platinum had a 126% increase, its highest level in 15 years.
Gold Premiums in Major Hubs
According to Reuters, a recent decline from all-time highs boosted retail demand, causing gold to trade at a premium in major hubs in China and India for the first time in almost two months.
Declining Dollar Supports Precious Metals
Amid growing predictions on US Federal Reserve cutbacks, the US dollar index, which compares the currency to six key rivals, continued to trade with minor increases at 98.43 after its biggest decline in eight years in 2025.
Because precious metals are valued in dollars, they continue to be comparatively inexpensive for holders of other currencies, which has helped to sustain the precious metals rise.
Although officials were still at odds on the timing and scope of any rate decreases, minutes from the FOMC’s December meeting revealed an increasing willingness among policymakers to loosen monetary policy if inflation continues to decline.
