Precious Metals Extend Powerful Rally: Gold Nears Peak Levels as Silver Hits Fresh Record Highs
Precious Metals Extend Powerful Rally: Precious metals maintained their impressive upward trajectory on Friday, December 12, with both gold and silver posting fresh gains across international spot markets and Indian commodity exchanges. Safe-haven buying, expectations of deeper interest rate cuts from the US Federal Reserve, a softer dollar index, and relentless industrial demand for silver continued to provide strong tailwinds. While gold traded comfortably near multi-week highs, silver stole the spotlight by repeatedly testing territory never seen before in its history.
Global Gold Price Action and Key Drivers
Spot gold held firm just below recent peaks, trading in a narrow range yet clearly supported by investor conviction. The yellow metal has benefited enormously from growing market confidence that the Federal Reserve will deliver additional rate reductions in the coming months. Lower interest rates reduce the opportunity cost of holding non-yielding assets, making gold particularly attractive during periods of monetary easing. At the same time, a steadily declining US dollar has made dollar-denominated commodities cheaper for overseas buyers, adding another layer of support. Geopolitical tensions and persistent inflation concerns have further reinforced gold’s status as the ultimate portfolio hedge.
Silver’s Extraordinary Outperformance
White metal has been the undisputed star of the bullion complex throughout the second half of the year. Silver surged past previous all-time highs and continued to flirt with levels above $63 per troy ounce in international trading on Friday. Unlike gold, which is primarily driven by investment and central-bank buying, silver enjoys substantial support from the industrial sector. Rapid expansion in solar panel manufacturing, 5G infrastructure, electric vehicles, and electronics has created structural demand that shows few signs of slowing. Limited new mine supply and concentrated production from a handful of countries have only intensified the bullish supply-demand imbalance.
Indian Gold Rates Show Steady Strength
Domestic gold prices in India mirrored the positive global tone, with 24-karat purity trading between roughly ₹1,30,000 and ₹1,45,000 per 10 grams across major cities on December 12. Retail rates in financial hubs such as Mumbai, Delhi, Chennai, and Kolkata reflected modest day-on-day gains, underpinned by firm international cues and steady wedding-season jewellery demand. Even though import duties and GST push final consumer prices higher, physical offtake has remained resilient. Many analysts believe the ongoing festive and marriage season will keep Indian gold imports elevated through the first quarter of the next calendar year.
Silver Prices in India Touch Historic Milestones
The story has been even more dramatic on the silver front. One-kilogram bars of 999 purity crossed the psychological ₹2,00,000 mark in several wholesale markets, a level unthinkable just a couple of years ago. Year-to-date returns for silver in rupee terms have far outstripped those of gold, delivering returns that have caught the attention of both retail investors and institutional players. MCX silver futures witnessed healthy trading volumes despite occasional profit-taking dips after the recent vertical rally.
Near-Term Volatility versus Long-Term Bullish Bias
Traders noted minor corrective pressure in silver futures during intraday trade on Friday as participants locked in gains following the breach of record territory. Technical indicators on daily and weekly charts for both metals flashed overbought readings, hinting at the possibility of short-term consolidation or minor pullbacks. Yet the overwhelming consensus among bullion analysts remains constructive. As long as the US dollar stays on the back foot and central banks maintain a dovish stance, precious metals are expected to retain their upward bias.
What Lies Ahead for Precious Metals Investors
Market participants are closely monitoring upcoming US economic data releases, particularly inflation readings and retail sales figures, for fresh clues about the pace of future Fed rate cuts. Any surprise uptick in inflation could temporarily cap gains, while softer-than-expected numbers would almost certainly trigger another leg higher. On the silver side, investors will watch quarterly demand updates from major industrial consumers and solar-energy associations. Central-bank gold purchases, especially from emerging-market nations, continue to provide a solid floor beneath prices even during periods of risk-on sentiment in equity markets.
The combination of monetary easing, industrial revolution in green technology, and persistent macroeconomic uncertainty has created an almost perfect backdrop for precious metals. Both gold and silver have rewarded patient investors handsomely throughout the year, and the structural drivers supporting higher prices appear firmly intact as we head toward year-end.