Gold and Silver Prices in India Post Stellar Yearly Gains; MCX Rates Ease on Profit Booking

Gold and silver have delivered one of their strongest yearly performances in recent history, driven by global monetary policy expectations and currency movements. As of early December 2025, gold prices have surged 66% year-to-date, while silver has soared 85%, significantly outperforming the yellow metal.

Renewed hopes of a U.S. Federal Reserve rate cut, a softer dollar, and a weakening Indian rupee have all contributed to the rally. However, both metals opened lower on Tuesday as traders booked profits after sharp gains.

MCX Price Movements

On the Multi Commodity Exchange (MCX), gold futures opened 0.41% lower at ₹1,30,109 per 10 grams, compared to Monday’s close of ₹1,30,652. Silver futures began 0.73% down at ₹1,80,701 per kg, versus the previous close of ₹1,82,030.

The pullback follows a steep run-up in the prior session, when gold touched a six-week high. The decline might be attributed to profit booking amid recent volatility.

Global Factors Driving the Rally

Gold’s recent surge was supported by expectations of a U.S. Federal Reserve rate cut and speculation about changes in the Fed’s leadership. A weakening rupee, which recently hit record lows against the U.S. dollar, has further inflated domestic prices.

Globally, the dollar index slipped to 99.43, down 0.03%, extending support to dollar-denominated commodities. International spot gold eased 0.2% to USD 4,222.93 per ounce, while U.S. gold futures for December delivery fell 0.4% to USD 4,256.30 per ounce.

Silver Outperforms

Silver has emerged as the standout performer in 2025, gaining 85% year-to-date compared to gold’s 66% rise. Over the past three months alone, silver prices have soared more than 40%, repeatedly testing record highs.

Tightening physical supply and expectations of looser global monetary policy have amplified silver’s rally. Silver’s industrial demand and investment appeal have contributed to its sharp outperformance.

Read More: Best Gold Mutual Funds in India.

Conclusion

Gold and silver have delivered exceptional returns this year, supported by global economic trends and currency movements. While profit booking has led to a short-term pullback, underlying factors such as monetary policy expectations and supply constraints continue to favour precious metals.

Investors will closely monitor upcoming U.S. Federal Reserve decisions and currency fluctuations for further price cues. The year 2025 stands out as a landmark period for precious metal markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

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