Gold Prices Bounce Back as Investors Seize Buying Opportunities

Gold prices experienced a notable rebound on the Multi-Commodity Exchange (MCX) on December 30, 2025, propelled by strong spot demand and renewed buying interest after a recent correction. This recovery reflects ongoing investor confidence in precious metals, despite short-term market volatility and profit-taking activities. As of the latest trading session, February futures for gold rose by 0.6% to Rs. 1,35,750 per 10 grams, while March futures for silver surged by 4.26%, reaching Rs. 2,33,999 per kilogram.

The positive momentum follows a significant decline the previous day, during which gold prices dropped by nearly 3.5% and silver by over 6%. In Mumbai, the price of 24K gold fell sharply, decreasing to Rs. 13,620 per gram from Rs. 13,925. The cost for 10 grams of 24K gold also decreased to Rs. 1,36,200 from Rs. 1,39,250. Similarly, prices for 22K gold declined to Rs. 12,485 per gram from Rs. 12,765, with the 10-gram unit now priced at Rs. 1,24,850, down from Rs. 1,27,650.

Market Dynamics and Future Outlook

The year 2025 has marked a remarkable period for precious metals, with domestic spot gold appreciating by nearly 80% and spot silver experiencing an impressive 170% increase. The surge in prices prompted some investors to take profits, particularly at peak levels. Nevertheless, analysts indicate that this selling pressure has been countered by robust buying interest, suggesting resilience in the market as it approaches 2026.

The long-term bullish trend in gold is largely attributed to the US Federal Reserve cutting interest rates, speculation about further reductions in the coming year, and sustained central bank buying. Additionally, investment in gold exchange-traded funds (ETFs) remains steady, while periods of dollar weakness have also bolstered gold’s appeal. Silver’s price increase, on the other hand, is primarily driven by strong industrial demand coupled with tight supply, resulting in only minor price corrections.

Geopolitical Factors and Global Market Trends

On the global front, gold and silver prices faced downward pressure overnight as traders engaged in profit booking and reassessed geopolitical risks. The value of spot gold declined from its recent peak, and silver prices also retreated after briefly reaching new highs. Key developments surrounding the ongoing Russia-Ukraine conflict continue to influence market sentiment. A successful negotiation toward a peace settlement or a significant escalation in hostilities could potentially shift gold and silver prices back into positive territory.

Investors are closely monitoring critical price levels for future trading sessions. For gold on the MCX, support is anticipated near Rs. 1,33,300 and Rs. 1,31,800, while resistance is observed around Rs. 1,36,600 and Rs. 1,38,000. In the case of silver, support levels are expected to be near Rs. 2,18,800 and Rs. 2,10,000, with resistance projected at Rs. 2,35,000 and Rs. 2,40,000.

As the market evolves, the interplay of demand, geopolitical factors, and investor sentiment will be crucial in determining the future trajectory of gold and silver prices.