Gold price continues to shine, Silver trades above ₹2,00,000. Will it sustain the rally in 2025?

By Admin

15 Dec, 2025

The precious metals market has witnessed a remarkable surge, with gold maintaining its upward momentum and silver crossing historic milestones. As investors turn towards safe-haven assets amid global uncertainty, the big question now is whether this rally can sustain through 2025.

Recent Performance of Gold and Silver

On Thursday, silver touched an all-time high of ₹1,98,814 per kg and ended the session 5.33% higher at ₹1,98,799 per kg. Gold February contracts also closed strongly at ₹1,32,469 per 10 grams, registering a 2% gain. These sharp moves highlight renewed investor interest in precious metals.

During Friday morning trade on December 12, profit booking was seen after record highs on the MCX. MCX gold February futures were trading marginally higher by 0.10% at ₹1,32,599 per 10 grams around 9:10 am, while MCX silver March futures slipped 0.50% to ₹1,97,951 per kg.

Key Factors Driving the Rally

Both gold and silver recorded strong gains following the US Federal Reserve’s 25-basis-point rate cut and its signal of a possible additional rate reduction next year. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold and silver, making them more attractive to investors.

According to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of the India Bullion and Jewellers Association Ltd., precious metals are trading firmly due to strong safe-haven demand amid ongoing geopolitical instability. He noted that the Federal Reserve has cut rates by 75 basis points this year, and Fed Chair Jerome Powell has indicated that the central bank is well positioned to wait and assess how the economy evolves.

Gold Price Outlook for 2025

According to Ponmudi R, CEO of Enrich Money, MCX Gold closed slightly higher at ₹1,33,622 per 10 grams, consolidating just below the key resistance band of ₹1,34,000 to ₹1,35,000 after testing weekly highs near ₹1,35,263.

Gold continues to trade within a rising channel, with every dip attracting fresh buying interest near the lower trendline. Immediate support is placed at ₹1,32,000 to ₹1,31,000. A decisive breakout above ₹1,35,000 could push prices toward ₹1,37,000 to ₹1,40,000. Factors such as persistent rupee weakness and sustained safe-haven inflows are expected to support gold prices in 2025.

Silver Price Outlook for 2025

Silver, after touching lifetime highs above ₹2,00,000 per kg, saw a sharp correction and settled around ₹1,92,600 per kg. The daily chart indicates a bearish close below the rising trendline, suggesting cooling momentum in the near term, although the broader bullish structure remains intact.

Strong structural support is seen at the 20 and 50 EMA cluster between ₹1,71,000 and ₹1,66,000. As long as silver prices stay above ₹1,80,000 to ₹1,81,000, the long-term bullish outlook remains unchanged. Immediate resistance lies between ₹1,95,000 and ₹2,00,000, and reclaiming this zone could trigger a fresh move toward ₹2,05,000 and beyond.

However, a break below ₹1,90,000 may accelerate profit booking toward ₹1,85,000 to ₹1,80,000. Despite this, the fundamental outlook remains strong due to global supply deficits and rising industrial demand from sectors such as solar energy, electric vehicles, and AI manufacturing. This supports a buy-on-corrections strategy for long-term investors.

Conclusion: Can the Rally Sustain in 2025?

Gold and silver are entering 2025 with strong fundamental and technical backing. While short-term volatility and profit booking are likely after sharp rallies, supportive monetary policy, geopolitical risks, and growing industrial demand point toward sustained strength in precious metals. For investors, gold continues to offer stability, while silver presents higher volatility with potentially greater long-term rewards.