The prices of gold and silver were on a tear for the fifth straight session today as investors continued to pile into safe-haven assets amid risks stemming from US blockade of Venezuelan crude oil shipments.
On the Multi Commodity Exchange, or MCX, the silver rate jumped 4% to an all-time high of ₹2,32,741 per kg even as the gold rate increased 0.81% to ₹1,39,216 per 10 gm. The local gold and silver prices were tracking global cues where the yellow metal crossed the $,4500/ounce mark while the white metal rose as much as 4.6% to breach $75/ounce levels for the first time.
The blistering bullion rally “was driven by safe-haven demand, amid mounting geopolitical tensions and expectations of interest rate cuts by the US Federal Reserve”, said Jigar Trivedi, senior research analyst at Reliance Securities.
The US blockade of Venezuelan crude shipments and military strike in Nigeria, as well as an escalation in the Russia-Ukraine war, have reinforced faith in gold and silver among investors, he said. Additionally, they are pricing in at least two US Fed rate cuts in 2026.
The Bloomberg Dollar Spot Index, a key gauge of the US currency’s strength, was down 0.8% for the week, its biggest drop since June. A weaker dollar is generally supportive of gold and silver prices.
Silver > Gold in 2025
Gold has gained around 70% this year and silver more than 150%, with both metals on track for their best annual performances since 1979.
The scorching rally has been supported by elevated central-bank purchases, inflows to exchange-traded funds and three successive interest-rate cuts by the US Federal Reserve. Lower borrowing costs are a tailwind for precious metals, which don’t pay interest, and traders are betting on more rate cuts in 2026.
“Momentum-driven and speculative players have been powering the rally in gold and silver since early December, with thin year-end liquidity…,” Kelvin Wong, senior market analyst at OANDA, told Reuters.
“Looking ahead into the first half of 2026, gold could move towards the $5,000 level, while silver has the potential to reach around $90.”
