NEW YORK, December 28, 2025, 21:05 ET
- Silver briefly climbed above $80 an ounce for the first time before sliding sharply in volatile trading.
- India’s domestic gold price hit a record 139,286 rupees per 10 grams on Friday, widening discounts as retail demand cooled.
- Indian silver and gold prices have surged on tight supply and industrial demand, keeping traders on edge for sharp pullbacks.
Silver climbed above $80 an ounce for the first time on Monday before sliding sharply lower, as investors piled into precious metals on bets the U.S. Federal Reserve will cut interest rates in 2026.
The sudden swings matter now because the global rally is feeding into record prices in key physical markets, including India, where higher costs are already curbing jewellery demand.
Analysts say the late-year surge has been amplified by supply concerns and crowded positioning, increasing the risk that any pullback could be swift even if the broader backdrop stays supportive.
Asian stocks were at six-week highs on Monday while the dollar hovered near its lowest in almost three months, with investors looking to minutes from the Fed’s last meeting due on Tuesday for clues on the pace of easing next year.
Charu Chanana, chief investment strategist at Saxo, said: “Add supply worries and the move has turned parabolic.” In market terms, that refers to a near-vertical rise that often comes with bigger day-to-day swings. Reuters
Gold eased nearly 1% on Monday, while platinum and palladium also fell sharply after touching all-time highs, Reuters reported.
In India, domestic gold prices hit a record 139,286 rupees ($1,550.34) per 10 grams on Friday, after spot gold — the price for immediate delivery — peaked at $4,530.60 an ounce in international trade.
Indian dealers offered discounts of up to $61 an ounce versus official domestic prices, inclusive of import and sales taxes, as the price rally cooled retail buying, Reuters said.
Market participants in India said the festive travel season has added to the slowdown, and that demand may stay muted for weeks unless prices correct meaningfully.
Silver’s surge has been even sharper in the local market. Silver prices jumped to 2.32 lakh rupees per kilogram on Friday after rising 14,000 rupees in a day, while gold touched about 1.37 lakh rupees per 10 grams, the Economic Times reported.
The Economic Times attributed the move to a mix of tight supply and strong industrial demand, with silver used in solar panels, electric vehicles and other electronics.
Retail price trackers showed gold in India quoted at about 14,121 rupees per gram for 24-karat gold on Monday, while silver was around 2,50,900 rupees per kilogram.
Goodreturns data showed silver in Delhi hit a monthly high of 2,51,000 rupees per kilogram on Dec. 27 before easing slightly.
Looking into 2026, strategists still see support from expected rate cuts and steady investor allocations to precious metals, but they warn that sharp short-term swings are likely to remain a feature — especially in silver.
