Gold and Silver Prices Drop as Investors Book Profits

Gold and silver prices experienced significant declines on December 29, 2025, after reaching record highs earlier in the month. Investors opted to book profits amid a backdrop of easing geopolitical tensions and heightened market volatility. On the Multi Commodity Exchange (MCX), February gold futures fell nearly 2 percent to Rs 1,37,646 per 10 grams. Similarly, April and June contracts also saw a decline of around 2 percent.

Silver futures for March delivery plunged by 8 percent following a surge to a lifetime high of Rs 2,32,663 per kilogram, while May and July contracts dropped between 9 and 10 percent after previously hitting their peaks. Analysts have linked the sharp correction in these precious metals to profit-taking, particularly after gold struggled to maintain its position above $4,550 on the Comex, with Rs 1,40,500 acting as a resistance level on the MCX.

Market Analysis and Future Expectations

Jateen Trivedi, an analyst at LKP Securities, indicated that gold prices are expected to remain volatile within the range of Rs 1,35,000 to Rs 1,42,000 in the near term. He noted that upcoming minutes from the US Federal Reserve could serve as a critical trigger for future price movements. While silver remained a focal point due to strong industrial demand and safe-haven buying, it too faced profit-taking pressures.

In light of the current market dynamics, Motilal Oswal has suggested buying silver around Rs 2,30,000 and gold near Rs 1,37,000, advising investors to set specific stop-loss and target levels.

Copper futures also experienced a sharp correction, with January delivery falling by 13 percent to Rs 1,211.05 per kilogram, following a previous peak.

As analysts look ahead, they anticipate continued volatility in precious metals, driven by global economic indicators, exchange-traded fund (ETF) flows, currency movements, and overarching macroeconomic developments. The current market landscape illustrates the complex interplay between investor sentiment and external factors influencing commodity prices.