Gold Prices Dip From Record Highs; Silver Steals Show on Dec 20, 2025

The Indian gold market saw a notable dip today, December 20, 2025, as prices retreated from their recent record highs. Rates across major Indian cities fell, with some reports indicating a drop of ₹1,000 from the peak and a fall of ₹931 per 10 grams in local markets. This comes after gold has surged an impressive 73% year-to-date, marking its best gains since 1979. Globally, the yellow metal remained relatively stable, with XAU/USD holding near the $4,338 mark, a key level watched by international investors.

While gold took a breather, silver truly stole the spotlight, continuing its remarkable ascent. The white metal crossed the ₹2 lakh per kilogram mark for the first time this week, boasting an incredible 133% gain this year alone. This spectacular performance has firmly placed silver in focus for precious metal investors. The dip in gold prices locally was also accompanied by news of weakening gold jewellery demand in both India and China in November, a factor that might have contributed to the recent price correction. This sentiment was echoed in the stock market, where major jewellery retailers saw their shares crash by up to 45%, indicating a challenging period for the sector. Adding to the broader market context, the India VIX index hit a record low today, potentially signaling reduced market volatility and a shift in investor sentiment away from traditional safe-haven assets.

Looking ahead, the market presents a mixed picture for gold. Several big banks have lifted their 2026 price targets for gold, some even forecasting it to touch $5,000. PL Capital also painted a positive outlook, suggesting both gold and silver are set to retain their shine next year. However, after such a phenomenal run, questions are being raised about whether gold is ripe for a correction in the coming year. For Indian investors and jewelry shoppers, the current dip from record highs might offer a window of opportunity, but uncertainty remains regarding short-term movements before Christmas. It would be prudent for buyers to keep a close watch on global economic cues and domestic demand trends to make informed decisions in this volatile yet promising market.