New Delhi | Gold prices started the new year on a firm note on Thursday, rising by Rs 640 to Rs 1,38,340 per 10 grams in the national capital, according to the All India Sarafa Association.

The yellow metal of 99.9 per cent purity had closed at Rs 1,37,700 per 10 grams on Wednesday.

However, silver prices extended losses for the second consecutive day, depreciating Rs 1,600 to Rs 2,37,400 per kilogram (inclusive of all taxes) from the previous close of Rs 2,39,000 per kg.

The rally in both gold and silver during 2025 was spectacular. The yellow metal delivered returns of 73.45 per cent. Meanwhile, silver outperformed gold with a surge of about 164 per cent.

In the international markets, spot gold slipped by USD 28, or 0.65 per cent, to close at USD 4,310.89 per ounce on Wednesday.

"On the last trading day of the year 2025, spot gold closed with a loss at USD 4,310 per ounce as US yields rebounded," Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.

He added that the international gold prices are expected to be range-bound in the short term.

On the outlook, Rahul Kalantri, Vice-President of Commodities at Mehta Equities, told PTI that "in 2026, the key drivers for gold and silver prices will be a mix of macroeconomic, monetary, and geopolitical factors such as expectations around US Federal Reserve interest rates, the strength or weakness of the dollar.

He added that continued central-bank purchases and exchange-traded funds (ETFs) flows will provide structural support, and episodes of geopolitical or financial market stress will boost safe-haven demand.

"Together, these factors will determine whether bullion stays near record highs or experiences volatility through the year," Kalantri added.

According to market experts, China's new curbs on silver exports are also expected to influence global supply and guide bullion prices in the near term.