Gold prices in India extended their upward trajectory on December 24, 2025, even as benchmark equity indices Sensex and Nifty ended the trading session in the red, reflecting cautious sentiment and increased volatility in the domestic markets.

While risk assets saw profit booking and muted participation ahead of the year-end holidays, safe-haven demand for the yellow metal remained strong, supported by global cues, expectations of softer interest rates, and lingering geopolitical uncertainties.

Gold Hits Fresh Highs

According to market data, 24-carat gold in India was priced around ₹1,38,270 per 10 grams on December 24, marking a gain of about ₹310 from the previous close, while 22-carat gold hovered near ₹1,26,748 per 10 grams, also registering a similar percentage increase.

Over the broader year, gold has delivered exceptionally strong returns for investors, with estimates indicating a rise of more than 70 percent in domestic prices during 2025, driven by persistent global uncertainty, central bank buying, and currency fluctuations.

Drivers Behind The Rally In Gold

Analysts point out that growing expectations of interest rate cuts by the US Federal Reserve in the coming year, combined with cooling inflation data, have boosted the appeal of non-yielding assets such as gold, pushing international spot prices to record highs near 4,500 dollars per ounce.

Rising geopolitical tensions, including disputes involving major economies and concerns around energy supplies, have further reinforced gold’s traditional role as a safe-haven asset, encouraging both institutional and retail investors to increase allocations to the metal.

Sensex And Nifty Close Lower

On the equity front, the BSE Sensex settled near 85,409 points, slipping around 0.14 percent, while the NSE Nifty ended close to 26,142 points, down roughly 0.13 percent, as traders preferred to book profits after recent gains and chose to stay light ahead of the Christmas break.

Broader market indices showed a mixed trend, with select midcap and smallcap counters facing pressure, even as a few sectors managed to remain resilient, underscoring the cautious and stock-specific nature of current trading activity.

Sectoral Performance And Flows

Selling was more pronounced in sectors such as oil and gas, information technology, pharma, consumer durables and select banking names, while pockets like real estate, metals and media showed relatively better resilience during the choppy session.

Foreign institutional investors have remained selective, with recent data indicating bouts of selling in frontline stocks, even as domestic institutional investors provided some support, helping contain deeper losses in the benchmark indices.

Volatility And Investor Sentiment

Market experts note that the current phase is characterised by low trading volumes, intermittent profit booking, and heightened sensitivity to global cues, making short-term movements in indices more volatile.

Volatility gauges have stayed at relatively controlled levels, but analysts caution that any sharp moves in global equities, currency markets, or commodity prices could quickly alter risk appetite, prompting investors to seek safety in assets like gold.

Outlook For Retail Investors

Financial planners suggest that retail investors should avoid reacting to day-to-day index swings and instead focus on asset allocation, balancing exposure between equities, gold, and fixed income in line with their risk profile and investment horizon.

In the near term, gold may continue to find support from central bank buying, geopolitical risks, and expectations of softer monetary policy, while Indian equities could remain range-bound and data-driven, with stock-specific opportunities emerging in select sectors.