Gold Slips Slightly as Silver Records a Sharp Rally; China’s Role Shapes Market Trend
On December 29, 2025, the prices of silver surged to cross the figure of ₹2.54 lakh per kg by surging more than ₹14,000 per kg, whereas 24-carat gold mildly declined due to the demand-supply chain as well as China-related policies
Silver Outperforms as Gold Takes a Breather
The market for precious metals began the week with a mixed start, with a strong surge seen in silver prices, while gold prices moved slightly lower. Silver prices jumped significantly by over ₹14,000 per kilogram, breaching the milestone of₹2.54 lakh per kilogram. This uptrend can be attributed to growing demand from investors as well as industries.
On the other hand, gold prices showed a slight decrease, with prices of 24 karat gold futures on the MCX falling to almost ₹1,39,501 per 10 grams, down by approximately ₹372 from the previous session, despite the overall hike in the prices of gold so far in the year 2025.
Experts have attributed the variation in prices to the differing forces of demand in the markets. The main factor that silver is enjoying is its extensive use in various sectors like the electronics industry, solar panels, and manufacturing process. The scarcity of silver supply along with the growing demand in the manufacturing sectors will help silver prices remain strong in the coming periods.
China’s Policies Trigger Further Boost to Silver Prices
The country’s role as a major silver producing and exporting country has come into play as one of the significant reasons for the current surge in the prices of silver. The news about possible export restrictions that will come into action from January 2026 is one of the forcing factors for the current increase in prices.
On the flip side, the expectation of soft global monetary policies, with the possibility of lowering interest rates by central banks, has acted as a supportive factor for precious metals. As gold is considered a long-term investment tool, the ongoing surge in the price of silver, with its multifaceted properties, also functions as an industrial metal.
Gold’s mild corrective move is in strong contrast to silver’s strong rally that remains in control of market sentiment as 2025 is now coming to an end.
