DBT Bureau
Pune, 1 Jan 2026
Gold prices declined by 0.89% to settle at ₹1,35,447, largely on profit booking after an exceptional rally, though the metal remains on track for its strongest annual performance in over four decades. Gold has surged nearly 70% this year, with momentum accelerating after the global tariff rollout by U.S. President Donald Trump, and has been underpinned by persistent geopolitical risks, multiple U.S. rate cuts, strong central bank buying, and sustained inflows into gold-backed ETFs. Federal Reserve meeting minutes indicated that most policymakers remain inclined toward further easing if inflation continues to cool, although divisions persist regarding the timing and scale of future rate cuts. Ongoing uncertainty around the Russia–Ukraine conflict, renewed tensions in the Middle East, and frictions between the U.S. and Venezuela continued to support safe-haven demand. Physical market dynamics were mixed. China’s net gold imports via Hong Kong jumped 101.5% month-on-month in November to 16.16 tonnes, reflecting improved buying interest. In contrast, Indian gold discounts widened to as much as $61 per ounce, the highest in over six months, as elevated prices dampened retail demand. Chinese discounts narrowed sharply, while other Asian hubs traded at modest premiums or small discounts. Technically, the market is under long liquidation, with open interest falling 2.67% to 15,721 alongside a 1,219 price decline. Gold has immediate support at ₹1,34,735, below which it could test ₹1,34,030. Resistance is seen at ₹1,36,250, and a move above may open the path toward ₹1,37,060.
Market analysis:
- Gold trading range for the day is ₹134030- ₹137060.
- Gold prices slipped on profit booking, but remained on track for its strongest annual performance in more than four decades.
- Bullion has surged 65% this year, a rally that accelerated in late April following President Donald Trump’s global tariff rollout.
- Federal Reserve’s December meeting minutes, showed that most officials would support rate cuts if inflation continues to fall.
Silver prices corrected sharply, settling down by 6.1% at ₹2,35,701 as investors booked profits toward year-end after an extraordinary rally. Despite the decline, silver has surged more than 180% in 2025, decisively outperforming gold and marking its strongest annual performance on record. The metal crossed several historic milestones during the year, supported by its inclusion as a critical mineral in the US, persistent supply tightness, chronically low inventories, and robust industrial as well as investment demand. Ongoing geopolitical risks also remained in focus, with the US signaling possible further action against Iran’s nuclear and missile programs and announcing operations in Venezuela, adding to near-term volatility. Fundamental support continues to stem from constrained global supply. Chinese silver inventories have fallen to their lowest levels in a decade after record exports exceeding 660 tonnes in October, while stocks linked to the Shanghai Futures Exchange are at their weakest since 2015. Liquidity outside China remains tight, with elevated borrowing costs in London despite strong inflows. The CME Group further raised margin requirements for March 2026 silver futures to about $30,000, following earlier hikes, in an effort to cool speculative activity after repeated record highs. Technically, the market is under fresh selling, with open interest rising 4.02% to 13,244 alongside a steep price decline of 15,311. Silver has immediate support at ₹2,31,290, below which prices may test ₹2,26,875. On the upside, resistance is seen at ₹2,41,060, and a move above this level could open the path toward ₹2,46,415.
Market analysis:
- Silver trading range for the day is ₹226875-₹246415.
- Silver dropped more than 5% as investors locked in year-end profits.
- Prices has surged more than 180% in 2025, dramatically outperforming gold and positioning 2025 as its strongest year on record.
- Silver crossed several historic milestones, buoyed by its designation as a critical mineral in the US.
(Disclaimer: This information is for educational purposes only. Please consult your financial advisor before taking positions in stocks)
