Gold Market Recap: Record Highs and RBI Concerns on 25 December 2025
Gold surged to record global highs above $4,500 before paring gains slightly. Indian markets saw varied movements, alongside RBI concerns on gold loans.
⚡ Key Highlights
- 1Global gold hit record high above $4,500, then settled lower.
- 2Indian gold prices showed mixed trends across major cities.
- 3Falling global interest rates continued to support yellow metal.
- 4RBI flagged gold loan default risks; banks tightened lending.
- 5Experts predict potential 10-15% gold price correction in early 2026.
The global gold market experienced a dramatic session on Christmas Day, with the yellow metal first surging to unprecedented levels before paring some of its gains. Internationally, XAU/USD breached the significant $4,500 mark, hitting a new record high of approximately $4,526 to $4,525, a level unseen before. However, the precious metal couldn't sustain these peaks throughout the day, eventually settling to hold near $4,480 to $4,475, reflecting some profit-booking after the sharp rally. This record-breaking momentum follows yesterday's news of gold breaking $4,500 and MCX hitting ₹1.38 Lakh, setting a high benchmark for the festive season.
Domestically, Indian gold prices presented a somewhat varied picture across different regions and reporting times. While some reports indicated that gold rates remained flat or unchanged across major metros like Delhi, Mumbai, Chennai, and Bengaluru, other sources highlighted increases and surges in cities such as Visakhapatnam and Vijayawada, alongside a general rise in gold prices across India. This dynamic suggests regional variations or intra-day volatility as markets reacted to global cues. Meanwhile, silver continued its impressive rally, reaching new highs and adding to the festive sparkle for precious metal investors.
A key driver behind gold's ascent has been the ongoing trend of falling global interest rates, which typically makes non-yielding assets like gold more attractive. However, this soaring valuation has also prompted important domestic developments. The Reserve Bank of India (RBI) has flagged concerns over the default risk associated with gold loans, given the rapidly increasing prices. In response, several banks have begun tightening their gold-loan lending policies, a move that could impact many Indian households reliant on such financing.
Looking ahead, the market remains abuzz with predictions following these new highs. While the current momentum is strong, a founder member of the GJC (Gem & Jewellery Council) has cautioned that gold prices might see a correction of 10-15% in early 2026. For Indian investors and jewelry shoppers, it’s crucial to remain informed about global interest rate movements and domestic policy changes, especially regarding gold loans. With both gold and silver at new highs, the coming days will be keenly watched to understand the sustainability of this rally and where prices might head next.