Gold, Silver Plunge in Futures Trade as Investors Book Profits Amid Stronger Dollar

Gold and silver prices slumped in the futures trade on Friday as traders booked profits following recent gains, weighed by a stronger US dollar and optimism over progress in the US-China trade negotiations.

On the Multi Commodity Exchange (MCX), the yellow metal futures for December delivery depreciated by Rs 1,109, or 0.89 per cent, to Rs 1,22,995 per 10 grams in a business turnover of 12,958 lots.

The February 2026 contract for gold futures also declined by Rs 1,075, or 0.86 per cent, to Rs 1,24,200 per 10 grams in 2,239 lots.

Similarly, silver futures also witnessed sharp losses. The white metal for December delivery plunged by Rs 2,683, or 1.81 per cent, to Rs 1,45,829 per kilogram in 21,080 lots, while the March 2026 contract fell by Rs 2,206, or 1.47 per cent, to Rs 1,47,878 per kg in 5,250 lots.

"Gold prices dropped in the futures market, coming as investors booked profits amid stretched valuations, renewed optimism over a potential US-China trade deal, and a stronger US dollar," Darshan Desai, CEO, Aspect Bullion & Refinery, said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent higher at 99.05.

Analysts said the precious metal lost its recovery momentum as the US dollar and Treasury bond yields gained ground.

"Updates on the US government shutdown, and next week's meeting between President Donald Trump and Chinese President Xi Jinping are key events. A successful trade agreement could add additional downward pressure on gold prices, while any escalation in US-Russia tensions or sanctions may lend support at lower levels," Desai added.

In the international markets, Comex gold futures for December delivery were trading lower by USD 20.61, or 0.50 per cent, to USD 4,124.99 per ounce on Friday after nearly a 2 per cent rise in the previous session.

"Gold prices fell to around USD 4,120 per ounce on Friday, on track to end its nine-week winning streak, pressured by heavy selling after repeatedly hitting record highs in recent sessions," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

He noted that the precious metal dropped more than 5 per cent early in the week -- marking its largest intraday loss in five years -- alongside significant withdrawals from gold-backed Exchange Traded Funds (ETFs), marking the biggest single day drop in holdings by tonnage in five months.

"Gold remains up more than 50 per cent year-to-date, supported by ongoing trade tensions, with focus on trade talks next week between Trump and his Chinese counterpart Xi Jinping," Trivedi said.

Comex silver futures for December delivery also declined by 1.06 per cent to USD 48.19 per ounce on Friday in the overseas markets after a 2.15 per cent rise in the previous session.

Trivedi further stated that geopolitical risks also persisted after the US imposed new sanctions on Russia in an attempt to pressure Moscow over a Ukraine ceasefire.

"Expectations that the Federal Reserve could deliver two more rate cuts by year-end continue to support bullion. Investors are now eyeing the key US Consumer Price Inflation (CPI) index report later in the day, which could influence the monetary policy outlook," he added.