Gold declines from record high: Is it vulnerable to short-term correction? All you need to know

How did gold perform on the MCX?

On the Multi Commodity Exchange (MCX), gold futures for December delivery fell ₹643 or 0.55% to ₹1,16,945 per 10 grams in a turnover of 15,733 lots, snapping a five-day winning streak.

The contract had hit a lifetime high of ₹1,18,444 per 10 grams on Wednesday. Similarly, the February 2026 contract declined ₹646 or 0.54% to ₹1,18,213 per 10 grams, after touching a record ₹1,19,674 per 10 grams in the previous session.

What are analysts saying?

"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," Darshan Desai, Chief Executive Officer at Aspect Bullion & Refinery, said.

Analysts noted that technical indicators place gold in the "overbought" zone, making it vulnerable to a near-term correction.

However, persistent uncertainty around the US government shutdown and its potential impact on the Federal Reserve’s interest rate stance could limit the downside.

"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, particularly from Exchange Traded Fund investors and central banks," Desai added.

The US government shutdown, which began on Wednesday, has already forced thousands of federal employees to stay home and could delay key economic data releases, including the jobs report. President Donald Trump indicated discussions were underway to make permanent cuts to federal programmes.

Meanwhile, Federal Reserve Bank of Dallas President Lorie Logan said on Thursday that while the central bank’s recent rate cut was aimed at guarding against labour market risks, policymakers must avoid easing too much and then being forced to reverse course.

Silver declines

Silver too witnessed a pullback after scaling fresh peaks earlier in the week. December silver futures dropped ₹2,170 or 1.5% to ₹1,42,550 per kilogram in 19,818 lots, while the March 2026 contract fell ₹1,996 or 1.36% to ₹1,44,266 per kilogram. Both contracts had hit record highs in the previous session.

"Silver prices witnessed profit booking after hitting all-time highs in the domestic markets. The US government's ongoing shutdown extended into a second day on Thursday, potentially delaying key economic data such as the non-farm payrolls report," Manav Modi, Analyst – Precious Metal Research at Motilal Oswal Financial Services, said.

Global market trends

In global markets, gold futures were trading lower at USD 3,867.15 per ounce after touching a record USD 3,923.30 per ounce in the previous trade. Silver futures for December delivery, however, rose nearly 1% to USD 46.79 per ounce, recovering from a recent high of USD 48.01 per ounce.

"Silver is trading near USD 47 an ounce but remains on track for a seventh consecutive weekly gain, supported by expectations of further US rate cuts and uncertainty from the government shutdown," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.