Gold and silver prices surged to fresh record highs on MCX on Wednesday, December 24, 2025, fueled by expectations of further US Federal Reserve rate cuts and a weakening US dollar. MCX gold February futures jumped 0.60% to reach ₹1,38,676 per 10 grams, while MCX silver March contracts climbed over 2% to touch ₹2,24,300 per kg in morning trades. By 1:30 pm, gold was trading at ₹1,38,309 (+0.31%) and silver at ₹2,23,630 (+1.81%), marking strong momentum in the domestic precious metals market.

Globally, gold prices surpassed $4,500 per ounce for the first time, as expectations of two Fed rate cuts in 2026 continued to drive safe-haven demand. The dollar index dropped by 0.20%, falling to a near three-month low, making gold cheaper for overseas buyers. Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that weakening dollar conditions, coupled with US-Venezuela tensions, have significantly bolstered demand for gold.

The domestic market mirrored the international trend, with spot gold prices rising nearly 80% and silver prices soaring 145%, reflecting unprecedented investor interest. Internationally, gold has surged 72% year-to-date, while silver has achieved a staggering 149% increase, indicating strong industrial and investment demand. Factors like robust central bank buying, geopolitical tensions, and continued interest in exchange-traded funds (ETFs) have also contributed to this rally.

Market analysts, including Manoj Kumar Jain from Prithvifinmart Commodity Research, outlined key levels for gold and silver this week. Gold is expected to trade between $4,284 and $4,580 per troy ounce, with support at $4,434-$4,480 and resistance at $4,535-$4,580. Silver is projected in the $66.40-$74.00 per troy ounce range, with support at $67.70-$70.00 and resistance at $72.70-$74.00. In INR terms, gold support levels are ₹1,36,550-₹1,35,710, and resistance at ₹1,38,650-₹1,39,470, while silver support lies at ₹2,16,780-₹2,18,150 and resistance at ₹2,21,810-₹2,22,970.

Analysts have advised investors to book profits in gold and silver around ₹1,40,000 and ₹2,24,000 ahead of the Christmas holiday, suggesting corrective dips as ideal points for fresh positions. Rahul Kalantri, VP of commodities at Mehta Equities, also highlighted similar support and resistance ranges in both USD and INR for traders to watch closely.

The price rally comes amid expectations that inflation will continue to ease and employment conditions will soften, giving the US Fed room for rate cuts. Historically, such monetary easing tends to boost gold as a hedge against currency depreciation and global uncertainties. Investors are also closely monitoring geopolitical developments, particularly tensions between the US and Venezuela, which have intensified safe-haven demand.

The rally in precious metals underscores their continued role as a hedge against inflation and currency volatility. With domestic gold and silver prices reaching record levels, investors are balancing between profit booking and long-term accumulation strategies. MCX commodity market updates suggest that the upward trend may continue if US monetary easing and dollar weakness persist.

In conclusion, gold and silver hitting fresh record highs on MCX reflects a combination of domestic and international factors — US Fed rate cut expectations, a weaker dollar, geopolitical tensions, and robust investment demand. Investors should monitor key support and resistance levels carefully while considering strategic entries and exits, ensuring well-informed decisions in the volatile precious metals market.

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