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 geopolitical 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 USD 4,056.85 per ounce, after hitting a record USD 4,081 per ounce on Wednesday.
"Gold prices pulled back on Thursday after a four-day rally that took the metal above USD 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 Bullion & Refinery, said.
Comex silver futures for December delivery also fell 1.17 per cent to USD 48.42 per ounce, after hitting a high of USD 49.19 per ounce on Wednesday.
According to commodities market experts, US President Donald Trump on Wednesday announced that Israel and Hamas had agreed on the first phase of his 20-point peace plan following 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.
Meanwhile, minutes from the US Federal Reserve's September meeting, released on Wednesday, showed near unanimity among participants in favour of lowering interest rates amid concerns over labour market risks.
However, policymakers remained divided on whether one or two more rate cuts would be appropriate before the year-end. The US government shutdown has entered its ninth day, keeping the dollar subdued and providing support to commodities, including gold and silver.
