Bullion futures fall amid book-profiting

New Delhi: Gold and silver prices declined in the futures trade on Thursday as traders booked profits at higher levels amid a strengthening US dollar and easing geopolitical tensions. Gold futures for February delivery declined by Rs 1,088, or 0.71 per cent, to Rs 1,51,774 per 10 grams in a business turnover of 11,996 lots.

On Wednesday, the yellow metal had surged by Rs 7,910 or 5.25 per cent, to hit an all-time high of Rs 1,58,475 per 10 grams, before closing lower at Rs 1,52,862 per 10 grams, down 3.54 per cent. Similarly, silver futures for March delivery depreciated by Rs 1,534, or 0.48 per cent, to Rs 3,16,958 per kg in 9,555 lots.

In the previous session, the white metal had snapped its record rally after touching an all-time high of Rs 3,35,521 per kg, before settling at Rs 3,18,492 per kg, down by Rs 17,029, or 5.07 per cent. “Gold and silver prices saw profit-booking as geopolitical tensions briefly eased after US President Donald Trump withdrew his threat of new tariffs on European nations and signalled a softer stance on Greenland, saying a ‘framework of a future deal’ had been agreed,” according to Renisha Chainani, Head - Research at Augmont.

She added that Trump’s assurance that force would not be used weighed on bullion prices and reduced immediate safe-haven demand. In the international market, Comex gold futures for February delivery also retreated from its record highs, falling by $8.76, or 0.18 per cent, to $4,828.74 per ounce.

In the previous session, the metal had hit a fresh peak of $4,890.35 per ounce, before settling at $4,837.5 per ounce, down by $52.8, or 1.08 per cent. “Gold’s record-breaking rally has hit a diplomatic speed bump.

The pivot from aggressive tariff threats to a ‘NATO framework’ for Greenland has effectively dissolved the immediate geopolitical risk premium,” Aamir Makda, Commodity & Currency Analyst, Choice Broking, said.