Gold, silver continue touching new highs amid rising geopolitical tensions

December 26, 2025

New Delhi: The gold prices surged over 0.5 per cent to record highs on Friday, due to rising geopolitical tensions and expectations for more US rate cuts next year.

Gold and Silver Scale Fresh Record Highs on MCX

MCX gold February futures rose 0.72 per cent to a record Rs 1,39,091 per 10 grams, while MCX silver March futures jumped 3.56 per cent to a record Rs 2,31,759 per kg, as of 10.10 am. Earlier in the day, silver futures had touched an intraday high of Rs 2,32,741 per kg.

Global Markets Mirror Bullion Rally

Rising tensions between the US and Venezuela is the major factor driving gold prices higher. International markets also saw bullion rise higher as spot gold rose 0.5 per cent to $4,501.44 per ounce by 0209 Greenwich Mean Time (GMT) zone after earlier touching $4,530.60.

Fed Rate-Cut Expectations Support Prices

Traders are pricing in two quarter‑point Fed rate cuts in 2026, as inflation cools and labour market conditions soften, and when coupled with safe haven demand due to rising geopolitical tensions, fuelled defensive buying.

Central Bank Buying and ETF Inflows Remain Strong

Geopolitical tensions have increased due to the US blockade of Venezuelan crude, Russia-Ukraine hostilities, and US military strike against ISIS in Nigeria. The US Coast Guard this month seized a super tanker under sanctions carrying Venezuelan oil and tried to intercept two more Venezuela‑related ships over the weekend heightening tensions.

“Central-bank buying and steady ETF inflows remain key support factors. Gold has support at Rs 1,36,550-1,35,710 while resistance at Rs 1,38,850-Rs 1,39,670. Silver has support at Rs 2,22,150-Rs 2,20,780 while resistance at Rs 2,25,810- Rs 2,26,970,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

Technical Levels to Watch

Aggressive central bank buying, expectations of US Fed rate cuts, concerns over impact of US tariffs, geopolitical tensions, and robust inflows into gold and silver ETFs drove the gold and silver prices this year, said analysts.