Bullion prices edge higher on first trading session of 2025; Gold nears Rs 76,900/10 gm, silver at Rs 87,420/kg

Gold price on the first trading session of 2025 continued to glitter after a solid performance in 2024. On the MCX, February gold futures topped 76,899 per 10 gm levels, while at around 11:34 am traded higher by 0.15 per cent or Rs 115 at Rs 76,863 per 10 gm. Silver, meanwhile, also was trading higher with March silver futures up 0.21 per cent or Rs 187 at Rs 87,420 per kg.

In the previous year, gold after making duty adjustment rose a sharp over 21 per cent, while silver climbed over 19 per cent- their best annual growth in many years.

Gold's best gains in the past year were fuelled amid increasing safe-haven demand in the wake of rising geo-political crisis as well as central banks’ rate cuts, although the mood this could turn more cautious depending on policy shifts after Donald Trump takes office as the US President.

Furthermore, the World Gold Council also has projected a slower price growth for gold in 2025.

Meanwhile, spot gold internationally traded with sharp gains of 0.71 per cent or $18.61 at $2,624.56.

Today's gains in gold came even as the dollar index traded strong with gains of 0.33 per cent at 108.49. Nevertheless, the US 10-year bond yield saw some weakness and was down 0.09 per cent.

Gold traded in a range during the morning session on the previous day, recovering slightly from the selling pressure witnessed in Monday's session. 

The recent selling was primarily driven by a rising dollar index, which climbed back above the 108 mark, creating resistance for gold near $2,630 on the Comex and Rs 77,000 in MCX.

Additionally, thin trading volumes due to the holiday period and New Year celebrations have kept gold prices range-bound, with limited participation from market participants, said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.