Futures retreat from record peaks amid profit booking

New Delhi: Gold prices on Thursday declined by Rs 1,098 to Rs 1,22,111 per 10 grams in the domestic futures trade, retreating from record highs as investors booked profits amid easing ge-opolitical tensions in the Middle East.

On the Multi Commodity Exchange (MCX), the yellow metal futures for December delivery plunged Rs 1,098, or 0.89 per cent, to Rs 1,22,111 per 10 grams after hitting a record high of Rs 1,23,450 per 10 grams on Wednesday.

Silver futures also retreated from their record peaks, dropping Rs 1,008, or 0.67 per cent, to Rs 1,48,847 per kilogram, after touching an all-time high of Rs 1,50,282 per kg in the previous market session.

Globally, bullion futures booked profits, with Comex gold for December delivery slipping 0.34 per cent to $4,056.85 per ounce, after hitting a record $4,081 per ounce on Wednesday. Comex silver futures for December delivery also fell 1.17 per cent to $48.42 per ounce, after hitting a high of $49.19 per ounce on Wednesday.

“Gold prices pulled back on Thursday after a four-day rally that took the metal above $4,000 per ounce, amid profit-taking, as the first step toward a peace deal between Israel and Hamas eased demand for safe-haven assets,” Darshan Desai, Chief Executive Officer of Aspect Bul-lion & Refinery, said.

According to commodities market experts, US President Donald Trump on Wednesday an-nounced that Israel and Hamas had agreed on the first phase of his 20-point peace plan follow-ing talks in Egypt. This development prompted traders to book profits, weighing on the bullion prices on Thursday.

“Further, concerns that a prolonged US government shutdown could weigh on economic activity make it prudent to wait for strong follow-through selling before confirming that gold prices have peaked.

Traders will closely watch US Federal Reserve Chair Jerome Powell’s speech later in the day for fresh cues on the monetary policy outlook,” an expert added.