New Delhi: Gold prices declined by Rs 643 to Rs 1,16,945 per 10 grams in futures trade on Friday, retreating from a record high as investors booked profits amid caution over the US government shutdown and the Federal Reserve’s policy outlook.
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell Rs 643, or 0.55%, to Rs 1,16,945 per 10 grams in a turnover of 15,733 lots, ending a five-day winning streak. The contract had earlier reached a lifetime high of Rs 1,18,444 per 10 grams on Wednesday.
Similarly, the February 2026 contract for gold futures dropped by Rs 646, or 0.54%, to Rs 1,18,213 per 10 grams. In the previous session, the precious metal had touched an all-time high of Rs 1,19,674 per 10 grams.
“Gold prices saw mild profit-taking on Friday, following a sharp rally of nearly 50% so far this year. Despite the pause, the yellow metal remains on track for its seventh consecutive weekly gain,” said Darshan Desai, Chief Executive Officer at Aspect Bullion & Refinery.
While technical indicators suggest that gold prices are currently in “overbought” territory and may face a short-term correction, ongoing uncertainty around the US government shutdown and its impact on Federal Reserve policy could limit downside pressure from a stronger US dollar, Desai added.
“At these elevated levels, investors booked partial profits, with an eye on re-entering during price corrections. Lower levels are likely to attract renewed buying interest, particularly from Exchange Traded Fund (ETF) investors and central banks,” he noted.
Commodity markets were closed on Thursday in observance of Gandhi Jayanti and Dussehra.
**Silver also sees a pullback**
Silver futures witnessed a pullback after scaling fresh peaks on Wednesday. The white metal futures for December delivery dropped by Rs 2,170, or 1.5%, to Rs 1,42,550 per kilogram in 19,818 lots. The contract had hit a record Rs 1,45,715 per kilogram on Wednesday.
The March 2026 silver contract tumbled by Rs 1,996, or 1.36%, to Rs 1,44,266 per kilogram in 2,400 lots, after touching a high of Rs 1,47,784 per kilogram in the previous trade.
“Silver prices witnessed profit booking after hitting all-time highs in the domestic markets. The US government’s ongoing shutdown extended into its second day on Thursday, potentially delaying key economic data such as the non-farm payrolls report,” said Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services.
Globally, gold futures were trading lower at USD 1,867.15 per ounce on Friday after touching a record high of USD 1,923.30 per ounce in the previous trade. However, silver futures for December delivery rose nearly 1% to USD 23.79 per ounce, recovering from a recent high of USD 24.01 per ounce.
“Silver is trading near USD 24 an ounce but remains on track for a seventh consecutive weekly gain, supported by expectations of further US rate cuts and uncertainty from the government shutdown,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Trivedi added that recent US macroeconomic data reinforced market participants’ bets on additional monetary easing, with traders fully pricing in a 25 basis point cut this month and another by December.
*Disclaimer: This story is from a syndicated feed. Nothing has changed except the headline.*
https://www.freepressjournal.in/business/gold-prices-fall-643-retreating-from-record-high-to-116945-per-10-grams-profits-booked-amid-caution-over-us-government-shutdown
