Gold prices witnessed a rebound on the Multi-Commodity Exchange (MCX) on Tuesday, December 30, supported by strong spot demand and renewed buying after the correction seen in the previous session. The recovery reflects continued investor confidence in precious metals despite near-term volatility and profit booking.
On MCX gold, February futures were trading 0.6% higher at Rs. 1,35,750 per 10 grams, while MCX silver March futures surged 4.26% to Rs. 2,33,999 per kg. The bounce comes a day after heavy selling pressure pushed gold down by nearly 3.5% and silver by over 6%.
Gold prices declined sharply in Mumbai. 24K gold fell to Rs. 13,620 from yesterday’s Rs. 13,925 per gram. The cost for 10 grams of 24K gold has also decreased to Rs. 1,36,200 from Rs. 1,39,250.
Similarly, 22K gold prices have also declined to Rs. 12,485 per gram from Rs. 12,765; the cost for 10 grams of 22K gold has dipped to Rs. 1,24,850 from Rs. 1,27,650.
As in Mumbai, gold prices in Chennai also decreased. 24K gold price per gram trades at Rs. 13,746 from the previous price of Rs. 14,204. The rate for 10 grams of 24K gold fell to Rs. 1,37,460 from Rs. 1,42,040.
The year 2025 has seen impressive gains in precious metals, with domestic spot gold rising by almost 80% and spot silver by about 170%.
The sharp increase in prices led to the selling of positions, especially at the highest price levels. However, analysts have noted that selling pressure has been met with strong buying, a sign of the market's strength heading into 2026.
The long-term uptrend in gold has been driven by the US Federal Reserve cutting interest rates, speculation of further cuts in the coming year, central banks' continued buying, steady investment in gold ETFs, and periods of dollar weakness.
On the other hand, silver's price increase has been driven mainly by robust industrial demand and tight supply, leading to only minor corrections.
In the global market, the overnight rates for gold and silver declined as traders booked profits and reassessed geopolitical risks. The value of spot gold went down from its all-time high, and silver also retreated after momentarily passing new highs.
The ongoing developments around the Russia-Ukraine war and the resulting geopolitical risks remain the main factors affecting the situation. A successful negotiation leading to a peace settlement or a significant escalation in negotiations could bring back the positive price movement in gold and silver.
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On MCX, gold is expected to find support near Rs. 1,33,300 and Rs. 1,31,800, while resistance lies around Rs. 1,36,600 and Rs. 1,38,000.
For silver, support is seen near Rs. 2,18,800 and Rs. 2,10,000, with resistance at Rs. 2,35,000 and Rs. 2,40,000.