New Delhi, Dec 31 (PTI) Gold and silver prices eased in the national capital on Wednesday tracking weak global trends and a firm US dollar on the final trading day of the year, even as both precious metals logged remarkable gains in 2025.

According to the All India Sarafa Association, gold prices of 99.9 per cent purity extended losses for the third straight day by declining Rs 1,300 to Rs 1,37,700 per 10 grams (inclusive of all taxes). It had closed at Rs 1,39,000 per 10 grams on Tuesday.

Despite the fall on the final trading day of the calendar year, gold prices have recorded an exceptional rally in 2025, delivering 73.45 per cent returns, or Rs 58,310, from Rs 79,390 per 10 grams, recorded on January 1.

Gold prices slipped on the final day of 2025. Despite the fall, the yellow metal marked a year of exceptional gains and positioning the precious metal for its strongest annual performance in more than four decades, Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Silver prices also retreated and snapped a six-day record-breaking rally. The white metal depreciated by Rs 2,000 to Rs 2,39,000 per kilogram (inclusive of all taxes) in the local bullion market, as per the association.

In the previous session, silver has climbed Rs 1,000 to touch a lifetime high of Rs 2,41,000 per kg.

On a yearly basis, silver has outperformed gold, by delivering robust returns of about 164 per cent. The prices of white precious metal have jumped by Rs 1,48,500, from Rs 90,500 per kg recorded at the beginning of the year.

In the international market, spot gold fell USD 30.59, or 0.71 per cent, to USD 4,308.30 per ounce.

Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said, "Bullion prices may see additional corrective pressure in the near-term. However, market participation is likely to remain thin amid year-end holidays, with the US market closing early on Wednesday." Globally, spot gold began the year around USD 2,657.16 per ounce and rallied to a peak of USD 4,550.11 per ounce on December 26.

So far this year, gold prices have surged USD 1,651.14, or 62.14 per cent.

"Gold's performance in 2025 reflects a structural shift in how investors and central banks are positioning portfolios.

"The rally is not driven by short-term speculation but by sustained investment flows into exchange traded funds (ETFs), alongside continued central bank buying as part of long-term reserve diversification," Inderbir Singh Jolly, CEO of PL Wealth, said.

He added that elevated geopolitical risks, stretched equity valuations, rising sovereign debt and currency volatility have reinforced gold's role as a strategic hedge rather than a tactical trade.

Jolly noted some consolidation is natural after a sharp run-up, the medium-term outlook remains positive, with gold continuing to play a critical stabilising role in diversified portfolios heading into 2026.

Meanwhile, spot silver tanked by USD 4.60, or 6.04 per cent, to USD 71.67 per ounce in the overseas market.

The metal, started the year around USD 29.57 per ounce and soared to a peak of USD 83.63 per ounce on December 29.

Overall, silver prices have surged USD 42.1, or 142.4 per cent, in 2025.

The US Federal Reserve's December meeting minutes, released on Tuesday, highlighted that most Fed officials viewed further rate cuts as appropriate, if inflation continues to fall, though they remained divided on the timing and magnitude of potential reductions.

On the geopolitical front, lingering uncertainty over a Russia-Ukraine peace deal, renewed tensions in the Middle East and frictions between the US and Venezuela continue to support demand for safe-haven assets, Trivedi of Reliance Securities added.

On the market outlook, Rahul Kalantri, VP, Commodities at Mehta Equities, told PTI, "In 2026, gold is more likely to enter a consolidation or sideways phase after its strong rally, as much of the bullish news is already priced in and higher price levels could invite profit-taking." He added that silver may continue its upward momentum, supported by strong industrial demand, energy-transition themes, and its tendency to outperform gold in the later stages of a precious-metals cycle.

"This divergence could keep gold range-bound while silver extends its rally. However, investors should remain prepared for higher volatility and periodic interim corrections," Kalantri said.

According to JP Morgan, the global investment firm is forecasting prices in the international markets to average USD 5,055 per ounce by the final quarter of 2026, rising toward USD 5,400 per ounce by the end of 2027. PTI HG TRB