Gold prices declined by ₹643, settling at ₹1,16,945 per 10 grams in futures trading on Friday, marking a retreat from recent record highs. This downturn occurred as investors engaged in profit-taking amidst concerns over a potential US government shutdown and the outlook for Federal Reserve policies.
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹643, or 0.55%, to ₹1,16,945 per 10 grams, with a turnover of 15,733 lots. This decline halted a five-day streak of gains. Earlier in the week, the contract had reached an all-time high of ₹1,18,444 per 10 grams.
Similarly, the February 2026 contract for gold futures fell by ₹646, or 0.54%, to ₹1,18,213 per 10 grams, after previously hitting ₹1,19,674 per 10 grams. Darshan Desai, Chief Executive Officer at Aspect Bullion & Refinery, noted, “Gold prices saw mild profit-taking on Friday, following a sharp rally of nearly 50% so far this year. Despite the pause, the yellow metal remains on track for its seventh consecutive weekly gain.”
Desai also indicated that technical indicators suggest gold prices are currently in “overbought” territory, making them susceptible to short-term corrections. However, ongoing uncertainties regarding the US government shutdown and its potential effects on Federal Reserve policy could mitigate downward pressure from a stronger US dollar. He remarked, “At these elevated levels, investors booked partial profits, with an eye on re-entering during price correction. Lower levels are likely to attract renewed buying interest, especially from Exchange-Traded Fund investors and central banks.”
Commodity markets were closed on Thursday in observance of Gandhi Jayanti and Dussehra holidays. Silver prices also saw a correction after achieving significant highs earlier in the week. The December silver futures contract plummeted by ₹2,170, or 1.5%, to ₹1,42,550 per kilogram, trading in 19,818 lots. This follows a record high of ₹1,45,715 per kilogram reached on Wednesday.
The March 2026 silver contract fell by ₹1,996, or 1.36%, to ₹1,44,266 per kilogram, after previously hitting ₹1,47,784 per kilogram. Manav Modi, Analyst at Motilal Oswal Financial Services, commented, “Silver prices witnessed profit booking after hitting all-time highs in the domestic markets. The US government’s ongoing shutdown, which extended into a second day on Thursday, may delay key economic data, including the non-farm payrolls report.”
In the global market, gold futures traded lower at $3,867.15 per ounce on Friday after reaching a peak of $3,923.30 per ounce. Conversely, silver futures for December delivery rose nearly 1% to $46.79 per ounce, recovering from a recent high of $48.01 per ounce. Jigar Trivedi, Senior Research Analyst at Reliance Securities, stated, “Silver is trading near $47 an ounce but remains on track for a seventh consecutive weekly gain, supported by expectations of further US rate cuts and uncertainty stemming from the government shutdown.”
Trivedi further noted that recent US macroeconomic data reinforced market expectations for additional monetary easing, with traders fully anticipating a 25 basis point cut this month and another by December.
Published on October 3, 2025
