MUMBAI– Gold and silver prices retreated on Friday morning as traders awaited the release of key U.S. inflation data later in the day, prompting profit-taking after weeks of record gains.
On the Multi Commodity Exchange (MCX), December gold futures slipped 0.44 percent to Rs 1,23,552 per 10 grams, while December silver contracts fell 0.98 percent to Rs 1,47,052 per kilogram.
Analysts said the pullback put gold on track to end its nine-week winning streak. “The drop comes as investors book profits amid stretched valuations, renewed optimism over a potential U.S.-China trade deal, and a stronger U.S. dollar,” they noted.
Market watchers said attention has shifted to the release of the U.S. Consumer Price Index (CPI) report, along with developments surrounding a possible U.S. government shutdown and next week’s expected meeting between President Donald Trump and Chinese President Xi Jinping.
Earlier in the week, gold suffered its steepest intraday decline in five years, tumbling more than 5 percent in a single session. Despite this correction, the metal remains up more than 50 percent for the year, buoyed by trade tensions and global uncertainty.
In international markets, spot gold slipped 0.2 percent to $4,118.68 per ounce at 3:15 a.m. GMT, marking its first weekly loss in ten weeks. Bullion has fallen about 3 percent this week — its sharpest weekly drop since mid-May.
A strengthening U.S. dollar also weighed on prices, making gold more expensive for overseas buyers. The dollar index rose for the third consecutive session.
Economists expect the CPI report to show core inflation steady at 3.1 percent for September. The data release was delayed earlier due to a temporary U.S. government shutdown.
Investors are also anticipating a 25-basis-point rate cut by the Federal Reserve next week. While lower rates typically boost gold by reducing the opportunity cost of holding non-yielding assets, analysts said near-term volatility may persist as markets digest fresh inflation and trade data. (Source: IANS)
