Today's Market Performance
Gold futures on the Multi Commodity Exchange (MCX) in India rose 0.25% to settle at ₹1,40,228 per 10 grams on December 29, 2025, after reaching an intraday high of ₹1,40,444. This kept prices near the recent record of ₹1,40,465 from Friday, amid year-end low liquidity amplifying movements.
Internationally, spot gold traded at $4,512.74 per ounce, down 0.4% after a Friday peak of $4,549.71. U.S. gold futures for February delivery fell similarly to $4,536.40 per ounce, showing divergent regional trends.
Earlier data from December 25 indicated spot gold at $4,478.31, down 0.56%, highlighting ongoing volatility as markets approach year-end.
Key Drivers Behind the Movement
Several factors fueled gold's buoyancy: easing monetary policies from major central banks, including anticipated U.S. Federal Reserve rate cuts, enhance gold's appeal over yield-bearing assets.
Geopolitical tensions, such as U.S.-Ukraine negotiations and trade uncertainties, drive safe-haven buying. Portfolio diversification amid currency fluctuations and economic worries further supports demand.
Year-end trading patterns with reduced volumes contribute to sharper swings, while 2025's overall 25-55% yearly gains—surpassing $4,000/oz in October—reflect historic strength from inflation hedging and central bank purchases.
Market Outlook and Investment Insights
Analysts view gold as a hedge against volatility, with silver also gaining traction due to industrial demand. Indian prices remain at a premium over global spots, like Dubai rates.
For 2026, sustained demand from central banks and geopolitical risks could push prices higher, though short-term dips—like today's minor international decline—may offer buying opportunities.
Investors should track global cues, Fed actions, and liquidity trends. Gold's long-term record as a store of value persists, averaging 7.9% annual returns historically versus stocks' 10.7%, but excelling in uncertain times.