Spot gold, silver prices up on geopolitical tensions, Fed rate-cut hopes
This story was originally published at 15:54 IST on 29 December 2025
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MUMBAI – Spot gold and silver prices rose Monday owing to continued geopolitical tensions. Growing expectations of a rate cut by the US Federal Reserve in 2026 also supported the spot prices of the bullion metals.
Spot gold of 99.9% purity was trading in the Mumbai market at INR 138,161 per 10 grams, up from INR 137,956 per 10 grams Friday. Spot silver of 99.9% purity edged higher at INR 243,483 per kg, compared with INR 228,107 per kg Friday, Kumar Jain, spokesperson, India Bullion and Jewellers Association, said. "There is no discount in gold and silver prices," Jain said.
"The Middle East (West Asia) has also been unsettled recently, with Saudi air strikes in Yemen and Iran saying the country is in a 'full-scale war' with the US, Europe, and Israel," Reuters quoted Yang An, analyst at Haitong Futures, as saying. Prices were also supported by the continued tensions between the US and Venezuela. "Geopolitical tensions further supported sentiment after the US ordered a blockade of sanctioned Venezuelan oil tankers, lifting risk premiums across commodity markets," Kedia Advisory said in a note.
Markets continue to price in two rate cuts by the Fed in 2026 as inflation cools and employment conditions soften in the US, despite divided views among policymakers, Kedia Advisory said.
Silver prices are also being supported by a rise in demand from jewellers, medical-device makers, electric-vehicle manufacturers, data-centre developers, and especially solar-panel factories, The Wall Street Journal reported, citing Citigroup analysts. "Even though there's been a push away from solar in the US, countries in Europe and China are not slowing down with solar capacity installation, and that's consuming a lot of silver," the report quoted John Ciampaglia, chief executive of Sprott Asset Management, as saying. End
Reported by Reshma Ravi
Edited by Rajeev Pai
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