CHENNAI: Gold and silver prices showed divergent but broadly positive trends during the week of December 15–20 as global macroeconomic cues, currency movements and investor positioning shaped sentiment across precious metals markets. While gold traded with a mildly cautious tone after an early-week rise, silver extended its strong momentum and significantly outperformed, touching fresh record levels before consolidating slightly toward the end of the week.
Gold prices opened the week on a firm footing, supported by lingering safe-haven demand and expectations that global central banks, particularly the US Federal Reserve, may maintain a softer policy stance in the coming months amid cooling inflation. In the early part of the week, international gold prices edged higher, and this strength was reflected in the Indian market as well, where domestic prices rose sharply at the start of the week. However, as prices approached elevated levels, some profit-booking emerged, especially in overseas markets, leading to mild corrections during the middle of the week.
By the latter half of the week, gold prices largely moved in a narrow range, indicating consolidation rather than a reversal. A relatively firm US dollar and a slight uptick in bond yields limited further upside, while persistent geopolitical uncertainties and portfolio diversification demand helped prevent a sharper decline. In India, gold prices eased marginally from their early-week highs but remained well above recent averages, highlighting that the broader underlying trend continues to be constructive despite short-term pauses. Physical demand remained somewhat muted due to high prices, though festive and wedding-related buying provided a degree of support.
Silver, in contrast, witnessed a far stronger rally through the week and emerged as the clear outperformer among precious metals. Prices surged sharply in the first half of the week, driven by a combination of strong industrial demand expectations, tight global supply conditions and heightened investor interest. Globally, silver climbed to fresh all-time highs during mid-week, and this surge was mirrored in the Indian market, where domestic prices also scaled record levels.
The rally in silver was underpinned not just by safe-haven flows but also by its growing importance as an industrial metal, particularly in renewable energy, electric vehicles and electronics. Speculative interest added further momentum, amplifying price movements. Toward the end of the week, silver prices experienced some volatility and mild profit-taking, especially after the sharp run-up, but they continued to trade at historically elevated levels, indicating strong conviction among market participants.
Sharing the outlook for the precious metals, Enrich Money CEO R Ponmudi said that MCX Gold futures have been consolidating in the Rs 1,33,400–Rs 1,35,300 range over the past week, just below a key resistance band.
"The contract continues to respect its rising channel, with dips attracting consistent buying interest. Support is placed at Rs 1,33,000–Rs 1,31,500. A decisive breakout above Rs 1,34,500–Rs 1,35,000 could accelerate the upmove toward Rs 1,37,000–Rs 1,40,000, aided by rupee dynamics and sustained safe-haven demand," he said.
About silver, he commented saying; "MCX silver continues to trade near lifetime highs above Rs 2,08,437, with momentum cooling marginally after an extended rally. While short-term consolidation is visible, the broader rising channel remains supportive. The Rs 2,05,000– Rs 2,00,000 zone, marked by multiple EMA supports on the daily chart, remains critical, and holding above Rs 2,00,000 keeps the long-term bullish structure intact. Since resistance is placed at Rs 2,10,000–Rs 2,15,000, a breakout above this zone could trigger fresh highs, supported by strong industrial demand and supply constraints."
As the markets head into the latter part of December, both metals remain well supported, though near-term price movements are likely to be influenced by thin holiday trading volumes and any fresh cues from global economic data and central bank commentary, say a couple of reports analysing the future trend.