Silver: After this year’s record surge futures fell 4.6%

Silver: On Wednesday, the last trading day of the year, precious metals—particularly silver—took a break after a surge to a record high and aggressive profit-booking.

In morning trading, silver futures for March 2026 on the MCX down 4.63 percent to Rs 239,395 per kg, while gold futures for February 2026 fell 0.51% to Rs 135,973 per 10 grams.

Geopolitical events, such as US raids on Venezuela’s dock facilities and Chinese navy drills that increased demand for safe havens earlier in the week, kept volatility high.

After making significant progress over the most of 2025, the regression occurred. According to economists, silver’s gains in December were 24% and 135 percent year over year, showing strong safe-haven flows and tight supply-demand dynamics.

On course for their best year performance since 1979, domestic spot gold prices have increased by more than 76% year to date, while international gold prices have increased by more than 70% in 2025.Tuesday saw significant fluctuation in the price of gold and silver, which recovered well from intraday lows as demand for safe haven assets increased due to growing geopolitical concerns. Rahul Kalantri, VP of Commodities at Mehta Equities Ltd., said that Russia’s allegations of a Ukrainian drone strike on the President’s mansion caused setbacks in the peace process between Russia and Ukraine.

Precious metals were further supported by US raids on Venezuela’s dock facilities and Chinese naval drills, which increased tensions between the US and Taiwan. But according to Kalantri, gains were restrained when the Federal Reserve’s policy meeting minutes lowered expectations of significant rate reduction in the next year.

According to him, silver has resistance at Rs 254,810–Rs 2,56,970 and support around Rs 2,45,150–Rs 2,42,780.

This year’s gold and silver prices were driven by aggressive central bank purchasing, anticipation of US Fed rate reduction, worries about the effects of US tariffs, geopolitical tensions, and strong inflows into gold and silver exchange-traded funds (ETFs).

According to a recent analysis from Motilal Oswal Financial Services Ltd., the low supply of deliverable silver has been made public by ongoing inventory drawdowns in major global hubs, a deteriorating arbitrage between Shanghai and COMEX, and recurrent delivery pressures.