Gold prices retreated from their record high on Monday, breaking a five-day rally, as investors booked profits amid easing geopolitical tensions.
In the national capital, the precious metal declined by ₹900 to ₹1,02,520 per 10 grams.
Gold of 99.9 per cent purity had surged to a record ₹1,03,420 per 10 grams on Friday after gaining ₹800 in the session. Similarly, gold of 99.5 per cent purity, which touched ₹1,03,000 in the previous trading session, dropped by ₹900 to ₹1,02,100 per 10 grams, inclusive of all taxes. In the five sessions leading up to Friday, gold prices had jumped ₹5,800 per 10 grams.
“Gold resumes trading on a weaker note as the upbeat market mood diminishes demand for traditional safe-haven assets,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities. “Additionally, a de-escalation in geopolitical tensions, as President Donald Trump agreed to meet Russian President Vladimir Putin in Alaska later this week to discuss peace efforts surrounding the Russia-Ukraine conflict.”
Gandhi added that clarification from the White House regarding a reported 39% tariff on gold bars also weighed on sentiment.
Silver prices followed a similar trend, slipping ₹1,000 to ₹1,14,000 per kg, inclusive of all taxes. On Friday, silver had ended at ₹1,15,000 per kg, having gained ₹5,500 over five consecutive sessions.
In the global market, spot gold dropped $40.61, or 1.19 per cent, to $3,358.17 per ounce in New York. On the Multi Commodity Exchange (MCX), gold futures for October delivery declined ₹1,280, or 1.26%, to ₹1,00,518 per 10 grams.
“Gold slipped more than 1% largely erasing last week’s gains as markets await clarification after the Trump administration on Friday called reports of tariffs on gold and other specialty products ‘misinformation’,” said KaynatChainwala, AVP of Commodity Research at Kotak Securities.
Market experts noted that while easing tensions have taken some heat out of the rally, lingering uncertainty over the US-China tariff truce, set to expire on Tuesday, is providing underlying support to bullion prices. Rising expectations of a US Federal Reserve interest rate cut and fresh selling in the US dollar are also helping to limit losses.
Investors are closely watching upcoming US macroeconomic releases, including the Consumer Price Index on Tuesday and the Producer Price Index on Thursday. Speeches by Federal Reserve officials later this week are expected to offer further clues on the near-term direction of gold prices.
Spot silver in the global market declined 1.39 per cent to $37.81 per ounce.
Prathamesh Mallya, DVP – Research, Non-Agri Commodities and Currencies at Angel One, said: “The tariff situation has caused chaos across the global world order and if it escalates then traders might see further rally in gold prices in the international markets to move higher towards USD 3,800 per ounce-mark while MCX futures will move higher towards ₹1,10,000 per 10 grams mark from a three-month perspective.”
