Analysts say long-term fundamentals such as central bank buying, ETF inflows and rate-cut expectations remain intact, even as near-term volatility persists due to expiry-related factors and global cues.
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Gold and silver witnessed sharp volatility, with both precious metals touching fresh record highs in early trade before pulling back significantly. Gold surged to $4,584 per troy ounce while silver climbed to $82.67 per ounce, but neither metal could sustain these elevated levels.
The pullback was primarily technical in nature, according to Rahul Kalantri, VP Commodities at Mehta Equities Ltd. “The pullback was largely technical, driven by stretched long positions and a hike in margin requirements by the CME, prompting leveraged players to cut exposure,” Kalantri said. Gold stabilized after recording more than a 4% fall, marking its largest intraday drop since October.
Thin holiday trading conditions amplified the intraday swings, dragging prices away from recent peaks above $4,550 for gold and $82 for silver. Gold steadied above $4,350 following the sharp profit-taking, while silver and copper also witnessed selling pressure after their recent run-up.
Despite the correction, safe-haven demand continues to provide underlying support to precious metals. Kalantri noted that “safe-haven demand stemming from US–Venezuela tensions and renewed Russia–Ukraine hostilities could lend support at lower levels.” Trump has warned of further Iran strikes and confirmed an attack on a Venezuela facility, while Russia-Ukraine peace talks face renewed doubts after reported escalation.
For traders, gold has support at $4,305-4,245 with resistance at $4,385-4,440. Silver has support at $71.20-69.75 while resistance is placed at $73.35-74.20. In rupee terms, gold has support at Rs1,33,550-1,31,710 with resistance at Rs1,36,850-1,38,670, while silver has support at Rs2,19,150-2,17,780 and resistance at Rs2,26,810-2,28,970.
Vikram Kasat, Head – Advisory at PL Capital, said “expiry-related volatility, FII activity, global cues and signals from the Fed minutes will be closely tracked” in the coming sessions. Long-term fundamentals including central bank buying, ETF inflows, and rate-cut expectations continue to underpin the precious metals trend despite the near-term technical correction.
Published on December 30, 2025
