Gold, Silver Futures Ease After Record Rally, Profit Booking & Global Cues Drag Prices

Mumbai: Gold and silver prices declined in futures trading on Thursday as investors chose to book profits after a sharp rise in the past few sessions. Prices had climbed to record highs earlier in the week, prompting traders to lock in gains when global risks showed signs of easing.

A stronger US dollar and reduced demand for safe-haven assets also added pressure on prices.

Gold futures retreat after hitting record high

On the Multi Commodity Exchange (MCX), gold futures for February delivery fell by Rs 1,088, or 0.71 percent, to Rs 1,51,774 per 10 grams. Trading activity remained healthy, with nearly 12,000 lots changing hands.

In the previous session, gold prices had surged sharply, touching an all-time high of Rs 1,58,475 per 10 grams. However, prices later cooled as selling pressure emerged, and gold ended Wednesday’s trade lower at Rs 1,52,862 per 10 grams.

Analysts said such sharp moves are often followed by a pause, as traders reassess positions.

Silver futures also see correction

Silver futures for March delivery also declined on the MCX, falling by Rs 1,534, or 0.48 percent, to Rs 3,16,958 per kg. Around 9,500 lots were traded during the session.

Earlier, silver had touched a record level of Rs 3,35,521 per kg before reversing sharply. The metal had closed the previous session lower at Rs 3,18,492 per kg, reflecting strong profit booking after the recent rally.

Geopolitical worries ease

Market experts said easing global tensions reduced the demand for gold and silver as safe-haven assets. The pullback came after US President Donald Trump softened his stance on trade tariffs against European nations and signalled a more diplomatic approach on Greenland.

According to analysts, these developments reduced immediate fears in global markets, prompting investors to move away from defensive assets like gold and silver.

International prices also cool

In the global market, Comex gold futures for February slipped from record levels to around USD 4,828 per ounce. Silver prices also cooled after hitting historic highs, though they later showed some recovery.

Correction seen as healthy

Experts said the current fall should be seen as a normal and healthy correction after an unusually strong rally. Profit booking helps cool excessive momentum and allows prices to stabilise before the next move. Investors will now closely watch global economic signals, currency trends and geopolitical developments for direction.