Gold, Silver Futures Fall as Investors Book Profits on Higher Level

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.

On the Multi Commodity Exchange (MCX), gold futures for February delivery declined by ₹1,088, or 0.71% to ₹1,51,774 per 10 grams in a business turnover of 11,996 lots.

On Wednesday, the yellow metal had surged by ₹7,910 or 5.25% to hit an all-time high of ₹1,58,475 per 10 grams, before closing lower at ₹1,52,862 per 10 grams, down 3.54%.

Similarly, silver futures for March delivery depreciated by ₹1,534, or 0.48% to ₹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 ₹3,35,521 per kg, before settling at Rs 3,18,492 per kg, down by ₹17,029, or 5.07%.

"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%, 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%.

"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.

As the spectre of a trade war with Europe recedes, we are seeing classic safe-haven liquidation, with investors rotating back into risk assets as the Arctic tension cools, he said, adding that profit booking was healthy for the commodity to cool down the euphoric momentum.

Comex silver futures for the March contract also cooled off but later rebounded by $1.30, or 1.41%, to $93.94 per ounce. The white metal had touched a record $95.78 per ounce on Tuesday.