Gold & Silver Market Wrap: 2025 Ends with Profit-Taking After Record rally – What’s Next?
After a year of spectacular gains, gold and silver experienced a slight pullback at the close of 2025 as investors locked in profits. While the finish wasn’t as dazzling as the preceding months, both metals are poised to conclude the year with historically significant increases. Let’s break down what happened,why,and what you should consider for your investment strategy moving forward.
A Late-Year Correction:
On Wednesday, silver futures on the MCX (Multi Commodity Exchange) took the larger hit, falling 6% to Rs 2,35,952 per kg – a substantial Rs 15,060 loss in a single session.Gold futures also dipped, declining 0.4% to Rs 1,36,124 per 10 grams. This correction followed a strong rally earlier in the week,demonstrating the market’s sensitivity to shifting sentiment.
* Previous Session Rebound: Bullion prices had previously rebounded sharply, fueled by safe-haven demand.
* Gold February futures: Closed 1.28% higher at Rs 1,36,666 per 10 grams.
* Silver March Futures: jumped 11.84% to Rs 2,51,012 per kg.
Global Market Trends Mirror Domestic Sentiment
The profit-taking wasn’t limited to India. international markets also saw a cautious tone on December 31st, with both gold and silver prices edging lower near all-time highs.
* Spot Gold: Fell 0.3% to around $4,334 an ounce, after peaking at $4,549.71 the previous week.
* US Gold Futures: Declined 1% to $4,346.50 an ounce.
Despite this late-year dip, remember that both metals are still set to finish 2025 with remarkable annual gains.
Geopolitical Factors & safe-Haven Demand
The recent surge in precious metal prices was largely driven by escalating geopolitical tensions. Several events contributed to this increased demand for safe-haven assets:
* Ukraine-Russia Conflict: Allegations of a drone attack on the Ukrainian President’s residence dampened hopes for a swift resolution.
* US-Venezuela Tensions: Reports of US airstrikes on a Venezuelan dock added to global uncertainty.
* Taiwan strait: A Chinese military exercise near Taiwan further heightened anxieties.
These events prompted investors to seek the security of gold and silver, driving up prices.
Looking Ahead: What Experts Predict
So, what does the future hold for gold and silver? According to Manoj Kumar Jain of Prithvifinmart Commodity Research, geopolitical developments will continue to provide short-term support. Though,several factors could limit further price increases.
* Federal Reserve Policy: The US Federal Reserve’s meeting minutes indicated a reduced likelihood of aggressive interest rate cuts in 2026. Lower rates typically boost gold prices.
* US Dollar Strength: A steady US Dollar Index, currently around 98.28 (up 0.04%), is also acting as a headwind for gold.
Key Technical Levels to Watch (MCX)
Jain highlighted crucial technical levels for trading on the MCX:
* Gold:
* Support: Rs 1,35,200 – 1,34,000
* Resistance: Rs 1,37,700 – 1,39,200
* Silver:
* Support: Rs 2,40,000 - 2,28,000
* Resistance: Rs 2,62,000 – 2,75,000
Investment Strategy: A Cautious Approach
Given the current market volatility, Jain advises a cautious approach.
* Wait for Stability: Avoid rushing into new positions until you see clearer price stabilization.
* Avoid Short Selling: With heightened volatility,short selling is particularly risky.
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