CHENNAI: Both gold and silver prices continued to show strong upward momentum in global markets and significant strength in Indian domestic markets on Friday (December 12), reflecting a continuation of trends that have developed over recent weeks. In the global bullion market, gold has remained close to multi-week highs as investor sentiment is influenced by expectations of further interest rate cuts by the US Federal Reserve and a relatively weaker US dollar.
These central bank policy expectations have encouraged investors to hold precious metals, driving gold’s spot price higher and keeping the overall tone of the market bullish. Silver has also registered exceptionally strong performance in global trading, hovering around record levels above sixty-three dollars per ounce after recently touching an all-time high. The industrial demand for silver, especially from sectors such as technology and renewable energy, has been cited as an important factor supporting this rally, while supply dynamics and strategic positioning by major buyers have further amplified price movements.
In Indian markets, gold prices showed modest gains in early trading sessions on Friday with the domestic 24-carat gold rate rising slightly compared to the previous day, indicating sustained demand in the physical market. Across major Indian cities, typical prices for 24-carat gold in the retail market were in the region of approximately Rs 1,30,000 to Rs 1,45,000 per 10 grams, with variations depending on local taxes, making charges and other factors.
These levels represent continued strength in the gold market, supported by both domestic jewellery demand and the influence of global price trends transmitted through exchange rates and import costs. Silver in India has also remained elevated, with kilogram prices for high-purity silver approaching and in some reports slightly above Rs 2,00,000. Silver prices have experienced remarkable appreciation over the course of the year, significantly outpacing gold in percentage terms and drawing attention from both investors and industrial buyers.
In the immediate term on December 12, silver showed some mixed movement with minor dips in certain futures markets on profit booking after recent record highs, even as overall prices stayed firm at historically high levels.
The year-to-date trend for both metals in India, according to reports, has seen pronounced gains driven by a combination of factors, including global economic uncertainty that has bolstered safe-haven demand for gold, and strong industrial interest and speculative positioning in silver. Throughout December, the markets have been sensitive to developments in Fed policy and expectations for monetary easing, with traders adjusting positions around key economic data releases and central bank commentary.
This sensitivity has created episodes of volatility but has, on balance, kept the direction of prices upward for both precious metals. Analysts in the Indian context have also noted that technical indicators in gold markets have occasionally signalled overbought conditions after sharp rallies, suggesting that short-term corrective movements cannot be ruled out even as the broader trend remains positive.
Overall, as of Friday, both gold and silver prices reflect sustained strength in global and Indian markets, with silver exhibiting particularly robust performance relative to its historic norms and gold maintaining its role as a sought-after asset amid shifting economic expectations. Bullion market experts say that investors and market participants continue to watch central bank actions, currency movements, inflation expectations and industrial demand patterns to gauge how long these elevated levels might persist and whether either metal is poised for further gains or potential short-term consolidation.