Gold Prices Pull Back From Record Highs; Silver Also Retreats
New Delhi: Gold prices retreated from record levels on Monday, falling Rs 606 to Rs 1,07,122 per 10 grams in the domestic futures market, as investors booked profits amid weak international cues.
On the Multi Commodity Exchange (MCX), gold futures for October delivery declined 0.56% or Rs 606 to Rs 1,07,122 per 10 grams, after hitting a lifetime high of Rs 1,07,807 per 10 grams on Friday. December gold contracts also slipped Rs 612 to Rs 1,08,176 per 10 grams.
Silver followed suit, retreating from last week’s highs. December silver futures dropped Rs 977, or 0.78%, to Rs 1,23,720 per kilogram, after scaling a record Rs 1,26,300 per kg on September 3.
In the spot market, bullion prices had surged over the weekend. According to the All India Sarafa Association, 99.9% and 99.5% purity gold rose Rs 900 each to Rs 1,07,870 and Rs 1,07,000 per 10 grams, respectively, while silver jumped Rs 1,400 to a fresh peak of Rs 1,27,000 per kilogram in New Delhi.
Overseas, Comex gold futures for December delivery fell 0.68% to USD 3,628.35 per ounce after reaching a record USD 3,655.50 per ounce in the previous session. Spot gold eased to USD 3,584.40 per ounce. Comex silver futures dipped 0.7% to USD 41.26 per ounce, while spot silver fell 0.88% to USD 40.64 per ounce.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that China’s central bank, the People’s Bank of China (PBoC), increased its gold holdings for the tenth consecutive month in August, reflecting its ongoing efforts to diversify reserves away from the US dollar. China’s gold reserves rose to 74.02 million fine troy ounces, valued at USD 253.84 billion, up from 73.96 million ounces (USD 243.99 billion) in July.
Trivedi also highlighted that the US administration recently exempted gold and some other metals from country-based tariffs, which is expected to support demand further.
Rahul Kalantri, VP Commodities at Mehta Equities, said weaker-than-expected US job numbers have raised expectations of a Federal Reserve interest rate cut, boosting safe-haven demand for gold. “Growing global uncertainties, a weakening dollar index, and a softer rupee have further supported gold and silver in domestic markets,” he added.
The World Gold Council noted that while central banks’ gold purchases have slowed as prices surged, ongoing geopolitical risks are likely to sustain demand. Global investment bank Goldman Sachs suggested that gold could rally toward USD 5,000 per ounce if the Fed’s independence is questioned, prompting investors to shift even a small portion of holdings from Treasuries to bullion.
