Weekly silver & gold wrap: Silver futures rally past ₹2.35 lakh/kg to record high; Gold surges 4% this week

The white metal has gained over 12% over the week. At around 8:14 pm, silver futures for the March expiry were trading 4.03% higher at ₹2,32,800 per kilogram.

Spot silver rose to hit the $75 per ounce mark for the first time in the overseas trade. The white metal climbed $3.72, or 5.18%, to touch a new record of $75.63 per ounce in the international market.

The silver rally has been driven by a strong demand coupled with supply shortages. The white metal is crucial for the solar industry and is important for other clean-tech infrastructure. Additionally, the U.S. classified the metal as a ‘critical mineral’, while China, the second-largest exporter, imposed export restrictions.

SilverM (Mini Silver Futures Contracts with February 27, 2026 expiry) also reached a lifetime high of ₹2,35,750 per kilogram on Friday after closing at ₹2,24,310 per kilogram the day prior.

At around 8:14 pm, SilverM futures were trading at ₹2,33,354 per kilogram. The trading unit of these contracts is 5 kilograms.

Domestic silver prices soared by ₹9,350 to hit a fresh lifetime high of ₹2,36,350 per 10 grams in New Delhi on Friday, tracking strong global cues, according to a PTI report, which cited All India Sarafa Association.

Gold prices

Gold futures for February expiry touched an intraday high of ₹1,39,851 per 10 grams on the MCX on Friday, December 26, driven by mounting geopolitical tensions, expectations of US Federal Reserve rate cuts and a weak dollar.

At around 8:14 pm, Gold February contracts were trading 1.08% higher at ₹1,39,588 per 10 grams. Over the week, the safe-haven metal prices surged 4%.

Investors rushed towards the safe-haven asset amid mounting geopolitical tensions between the US and Venezuela, and the military action undertaken by the former in Nigeria. Furthermore, continued escalations between Russia and Ukraine also added to the uncertainty.

Meanwhile, expectations of the US Federal Reserve rate cuts in 2026, in the midst of the release of key US economic data, also made the metal rally.

Additionally, the dollar index has slumped about 1.7% this December, extending a pattern of underperformance seen during the final month of the year, as per a report from the India Bullion and Jewellers Association.

Domestic gold prices (99.9% purity) climbed by ₹1,500 to touch a new record of ₹1,42,300 per 10 grams (inclusive of all taxes). It had finished at ₹1,40,800 per 10 grams in the previous market session, as per the PTI report.

So far this year, gold prices have added ₹63,350, or 80.24%, from ₹78,950 per 10 grams recorded on December 31, 2024.

Globally, spot gold rose by $50.87, or 1.13%, to hit a new lifetime high of $4,530.42 per ounce.