Snapping a five-day rally, gold prices retreated from record high levels and ended Rs 900 lower at Rs 1,02,520 per 10 grams in the national capital on Monday as stockists turned to selling amid easing geopolitical tensions.
According to the All India Sarafa Association, the precious metal of 99.9 per cent purity had climbed Rs 800 to hit a record peak of Rs 1,03,420 per 10 grams on Friday.
Gold of 99.5 per cent purity, which also reached the peak of Rs 1,03,000 per 10 grams in the preceding session, declined Rs 900 to Rs 1,02,100 per 10 grams (inclusive of all taxes) on Monday.
In the five sessions until Friday, the yellow metal prices increased by Rs 5,800 per 10 grams.
"Gold resumes trading on a weaker note as the upbeat market mood diminishes demand for traditional safe-haven assets.
"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," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
Also, the clarification from the White House regarding a 39 per cent tariff on gold bars exerted downward pressure on gold prices, Gandhi said.
According to the All India Sarafa Association, silver prices depreciated by Rs 1,000 to Rs 1,14,000 per kg (inclusive of all taxes) on Monday. The white metal had ended at Rs 1,15,000 per kg on Friday.
Silver prices rose by Rs 5,500 per kg in five straight days to Friday.
In the global market, spot gold fell by USD 40.61 or 1.19 per cent to trade at USD 3,358.17 per ounce in New York.
On the multi commodity exchange, gold futures for October contract depreciated Rs 1,280 or 1.26 per cent to trade at Rs 1,00,518 per 10 grams.
"Gold slipped more than 1 per cent, 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'," Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said.
According to commodities market experts, the uncertainty over the US-China tariff truce, which is due to expire on Tuesday, lends some support to the precious metal. Adding to this, rising expectations of a interest rate cut by US Federal Reserve and the emergence of fresh US Dollar selling help limit losses for the yellow metal.
Meanwhile, investors this week will monitor the release of US macroeconomic data such as the Consumer Price Index (inflation) on Tuesday and the Producer Price Index on Thursday. This, along with speeches from US Fed officials' will provide further guidance on the near-term trajectory for the bullion prices.
Spot silver slipped 1.39 per cent to trade at USD 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 Rs 1,10,000 per 10 grams mark from a three month perspective."
This report includes content sourced from Press Trust of India (PTI), edited for clarity and context.
