Gold and silver prices today: Gold and silver extended their strong rally on December 25, touching fresh all-time highs as geopolitical risks and a weaker US dollar pushed investors toward safe-haven assets. As per the sources, spot gold climbed as much as 1.2% to cross Rs 4,530 an ounce, while silver surged for a fifth straight session, jumping up to 4.5% to breach Rs 75 an ounce for the first time.
Geopolitical Risks Drive Safe-Haven Demand
Rising global tensions have boosted the appeal of precious metals. In Venezuela, the US has reportedly blockaded oil tankers and stepped up pressure on President Nicolás Maduro’s government. Separately, the US carried out what President Donald Trump described as a “powerful and deadly strike” against a terrorist group in Nigeria.
These developments have reinforced gold’s role as a hedge during periods of uncertainty, traders said.
Weak Dollar, Rate Cut Bets Support Prices
The rally has also been aided by a softer dollar. The Bloomberg Dollar Spot Index fell 0.8% this week, marking its biggest weekly decline since June. A weaker dollar typically makes commodities priced in dollars more attractive to global investors.
Gold prices are up nearly 70% so far this year, while silver has soared more than 150%, putting both metals on track for their strongest annual gains since 1979, according to Bloomberg data. The surge has been supported by aggressive central bank buying, steady inflows into exchange-traded funds (ETFs), and three US Federal Reserve interest rate cuts this year. Lower rates tend to favour non-yielding assets such as gold and silver, with traders now betting on further easing in 2026.
ETF Inflows And Supply Concerns Lift Silver
ETF demand has played a key role in the recent upswing. Data from the World Gold Council shows holdings in gold-backed ETFs rose in every month this year except May. Assets held by SPDR Gold Trust, the world’s largest gold ETF, have climbed more than 20% in 2025.
Silver has outperformed gold amid speculative buying and ongoing supply disruptions. While London vaults have seen large inflows since October, much of the world’s available silver remains concentrated in New York. Markets are also watching a US Commerce Department investigation into whether imports of critical minerals pose a national security risk, a probe that could lead to tariffs or trade restrictions on silver, further tightening supply.
