After months of glittering rallies, hitting record highs, gold and silver ended 2025 on a muted note as investors turn to book profits on the last day of 2025. On Wednesday, silver futures for March 2026 witnessed a sharp sell-off, plunging 6% to Rs 2,35,952 per kg on the MCX, a loss of Rs 15,060 in a single session. Gold futures for February 2026 also edged lower, slipping 0.4% to Rs 1,36,124 per 10 grams. The correction was far steeper in silver, which had recently surged to all time highs. The pause came after a strong rally earlier in the week. In the previous session, bullion prices had rebounded sharply from intraday lows, supported by renewed safe-haven demand. Gold February futures had closed 1.28% higher at Rs 1,36,666 per 10 grams, while silver March futures had jumped 11.84% to Rs 2,51,012 per kg on the MCX. Global markets took a cautious tone. International gold and silver prices edged lower on December 31 as traders booked profits near all-time highs. Spot gold fell 0.3% to around $4,334 an ounce in early Asian trade, after touching a record high of $4,549.71 last week. US gold futures for February delivery declined 1% to $4,346.50 an ounce. Even with the late pullback, both metals are set to end 2025 with historic annual gains.Markets became cautious after Russia alleged that Ukraine carried out a drone attack on the President’s residence, weakening expectations of a near-term peace deal. Additionally, reports of US airstrikes on a Venezuelan dock and a Chinese military exercise in waters close to Taiwan, also pushed investors towards gold and silver as traditional safe-haven assets.
What’s the outlook?
Manoj Kumar Jain of Prithvifinmart Commodity Research told ET that in the short term, bullion prices are supported by geopolitical developments. However, he cautioned that the US Federal Reserve’s meeting minutes released on Tuesday reduced the likelihood of aggressive interest rate cuts in 2026, which may limit further upside in precious metal prices. Adding to the headwinds, the US Dollar Index held steady near 98.28, up 0.04%, hitting the momentum in gold. Sharing his trading view, Jain highlighted major technical levels for the MCX. Gold has support at Rs 1,35,200–1,34,000 and resistance at Rs 1,37,700–1,39,200. For silver, support lies between Rs 2,40,000 and Rs 2,28,000, while resistance is seen in the Rs 2,62,000–2,75,000 range. He advised investors to wait for clearer price stability before taking fresh positions and to strictly avoid short selling amid heightened market volatility.(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.)