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Kolkata: After blazing the year, silver and gold prices fell on the last day of the year. After the significant surge in 2025, gold prices fell by about Rs Rs 1,000 and silver prices fell by Rs 18,000. Both gold and silver prices fell sharply in morning trading on the Multi-Commodity Exchange (MCX). After reaching record highs, profit-booking by investors has put pressure on precious metals analysts pointed out.
MCX Gold February futures fell 0.75% to Rs 1,35,644 per 10 grams, while MCX Silver March futures witnessed a decline of 7.22% and reached Rs 2,32,900 per kg. This signals a big drop of Rs 18,112 today. In the global markets, spot gold was trading at $4345 per ounce with a rise of 0.44%, while spot silver was trading at $72.23 per ounce with a rise of 1.45%. At the retail level, on Dec 31 gold prices fell by Rs 1,060 to reach Rs 1,36,070 per 10 grams on bullion websites. Silver prices fell by Rs 18,600 to reach Rs 2,32,890 per kg.
Traders booked profits on December 31 after precious metals hit record highs. However, this year, gold prices have risen by a staggering 76%, and silver by nearly 170%. The main reasons for the sharp rise in gold prices include interest rate cuts by expectation of US Federal Reserve. But that's only one of the driving factors. Others are aggressive buying by various central banks around the world and safe-haven demand from investors. Then there are global geopolitical tensions that drove the safe-haven demand. And another significant driver is very strong investment flows into ETFs. Even crypto didn't generate returns in 2025 too.
And another imprtant driver for silver prices is the constant demand from industrial sectors such as electric vehicles, solar power, high-performance electronics. Also, there is a supply crunch even in the face of high and constant demand.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, InvITs and any form of alternative investment instruments and crypto assets.)
