Gold Prices Fall Rs 1,098 as Investors Book Profits; Ease in Middle East Tensions Weighs on Sentiment
New Delhi: Gold prices slipped by Rs 1,098 to Rs 1,22,111 per 10 grams in domestic futures trade on Thursday, retreating from record highs as investors booked profits following signs of easing geopolitical tensions in the Middle East.
On the Multi Commodity Exchange (MCX), gold futures for December delivery dropped 0.89 per cent, or Rs 1,098, to Rs 1,22,111 per 10 grams, after touching an all-time high of Rs 1,23,450 per 10 grams on Wednesday.
Silver futures also corrected from their peaks, falling Rs 1,008, or 0.67 per cent, to Rs 1,48,847 per kilogram, compared to a record Rs 1,50,282 per kg in the previous session.
In the international market, Comex gold for December delivery slipped 0.34 per cent to USD 4,056.85 per ounce, after hitting a record USD 4,081 per ounce a day earlier. Silver futures on Comex for the same month fell 1.17 per cent to USD 48.42 per ounce, from Wednesday’s high of USD 49.19.
“Gold prices pulled back on Thursday after a four-day rally that lifted the metal above USD 4,000 per ounce, as traders booked profits amid optimism over an initial peace agreement between Israel and Hamas, which reduced safe-haven demand,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
Market experts said US President Donald Trump on Wednesday announced that Israel and Hamas had agreed on the first phase of his 20-point peace plan following talks in Egypt, prompting a wave of profit-booking in the bullion market.
They added that while concerns over a prolonged US government shutdown continue to linger, investors are awaiting Federal Reserve Chair Jerome Powell’s remarks later in the day for further cues on monetary policy.
Minutes from the Fed’s September meeting, released on Wednesday, showed broad consensus among members in favor of rate cuts due to labour market risks, though opinions differed on whether one or two more cuts would be needed before year-end.
The ongoing US government shutdown, now in its ninth day, has kept the US dollar subdued, offering partial support to commodities like gold and silver despite Thursday’s profit-driven decline.
