MUMBAI — December 29, 2025
Profit Booking Ends Bullion Rally After Record Surge
India’s bullion market witnessed sharp volatility on Monday as gold and silver prices retreated from record highs amid aggressive profit booking by investors. After a historic rally over the past several sessions, traders locked in gains, triggering a strong correction across domestic and global markets.
On the Multi Commodity Exchange (MCX), silver prices plunged nearly 3%, while gold snapped its four-day winning streak, reflecting a cooling-off phase after an extraordinary surge.
Silver Drops Over ₹7,000 From Lifetime High
Silver futures experienced intense intraday swings. Prices initially surged to a new all-time high of ₹2,54,174 per kilogram but failed to sustain the momentum as selling pressure emerged at elevated levels.
MCX silver futures later fell sharply by ₹7,124, or 2.97%, to an intraday low of ₹2,32,663 per kg. Notably, silver had rallied more than 15% (₹31,348) in just one week, prompting expectations of a technical correction.
Market participants said the sharp decline was driven primarily by profit booking after the metal entered overextended territory.
Gold Rally Pauses After Four-Day Surge
Gold prices also came under pressure despite opening on a firm note. As profit booking intensified, MCX gold futures slipped ₹1,497, or 1.07%, to ₹1,38,376 per 10 grams.
On Friday, gold had touched a record high of ₹1,40,465 per 10 grams, marking one of the strongest short-term rallies in recent years. Monday’s decline ended gold’s four-session winning streak.
Bullion Enters ‘Overbought’ Zone: Experts
According to jeweler and market expert Manish Verma, the recent pullback was a natural outcome of the sharp rally.
“During the European trading session, gold and silver corrected from record highs mainly due to profit booking after an unprecedented rise,” Verma said.
He added that long-term charts show both metals entering ‘overbought’ territory, signaling caution. “A healthy correction is required before the next leg of the rally. Month-end and year-end portfolio rebalancing could keep prices under pressure in the near term,” he noted.
Global Markets Mirror Domestic Weakness
Weakness in domestic bullion prices echoed trends in global markets. On COMEX, March 2026 silver futures fell sharply by $3.49, or 4.51%, to $73.71 per ounce after hitting a historic high of $82.67 per ounce, crossing the $80 mark for the first time.
Meanwhile, international gold prices for February delivery declined $72.55, or 1.59%, to $4,480.15 per ounce. During intraday trade, gold briefly touched $4,581.30, close to Friday’s record peak of $4,584 per ounce.
Outlook: Volatility Likely to Continue
Market analysts believe volatility may persist in the bullion market as investors adjust positions ahead of the year-end. While near-term fluctuations are expected, the long-term trajectory of gold and silver will depend on global economic cues, interest rate expectations, inflation trends, and geopolitical developments.
