NEW YORK, December 30, 2025, 21:44 ET
India’s silver futures jumped on Tuesday after a sharp one-day selloff from record highs, and gold futures also rebounded on the Multi Commodity Exchange (MCX). Silver’s March 2026 contract rose 7.59% to 241,458 rupees per kg and gold’s February 2026 contract gained 1.42% to 136,855 rupees per 10 grams, while benchmark prices from the India Bullion and Jewellers Association (IBJA) showed both metals lower, Jagran reported.
The whipsaw in bullion prices comes as traders close out positions ahead of year-end, when thinner liquidity can magnify moves. The surge has made precious metals one of 2025’s standout trades, raising the stakes for hedgers and retail investors alike.
Volatility is also being fuelled by policy and supply headlines that carry into the new year, from U.S. interest-rate expectations to tighter oversight of critical minerals. For Indian households, high rupee prices are already reshaping how gold is bought and stored.
Aaj Tak reported that MCX silver hit an all-time high of 254,174 rupees per kg on Monday before tumbling by about 32,000 rupees, leaving it still well below the peak despite Tuesday’s rebound. It put MCX gold’s record at 140,655 rupees per 10 grams.
MCX is India’s main commodity derivatives exchange, where futures contracts let traders lock in a price for delivery in later months. Those contracts are leveraged, meaning small price moves can trigger large gains, losses and margin calls.
In global trade, spot gold rose 0.8% to $4,364.70 an ounce and silver climbed 7.3% to $77.48, after Monday’s sharp drop from recent records, according to Reuters. “We saw very extreme volatility yesterday … but things have stabilised somewhat today,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. Gold is up 66% in 2025 — its steepest annual rise since 1979 — while silver has soared 168%, Reuters reported, as investors weighed minutes from the U.S. Federal Reserve’s December meeting ahead of its next policy decision on Jan. 27-28. Reuters
Supply worries have also intensified after China named 44 companies allowed to export silver in 2026 and 2027 as it tightened oversight of critical metals, a move its commerce ministry linked to national security. Reuters said silver, used in jewellery and solar equipment, has rallied to record highs this year amid supply constraints and low inventories.
In India, record prices are pushing buyers away from jewellery and toward coins and bars, even as investment demand rises, a separate Reuters report showed. Domestic gold prices have climbed 77% this year, outpacing the Nifty 50’s 9.7% gain, helped by a weaker rupee.
Jewellery retailers typically track IBJA reference rates, which exclude taxes, while futures prices on MCX can diverge in volatile sessions. The mismatch can confuse retail buyers who see different “gold price” and “silver price” quotes across markets.
Year-end repositioning can drive sudden reversals, especially in leveraged futures markets where margin calls force liquidation. For Indian investors, the swings increase hedging costs and can spill into local jewellery pricing with a lag.
For investors and jewellers, the past few sessions underline how quickly bullion can move when liquidity is thin. The new year opens with prices high and nerves frayed.
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