Gold retreats from all-time high, ends ₹900 lower at ₹1,02,520/10g

Snapping a five-day rally, gold prices retreated from record high levels and ended ₹900 lower at ₹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% purity had climbed ₹800 to hit a record peak of ₹1,03,420 per 10 grams on Friday.

Gold of 99.5% purity, which also reached the peak of ₹1,03,000 per 10 grams in the preceding session, declined ₹900 to ₹1,02,100 per 10 grams (inclusive of all taxes) on Monday.

In the five sessions until Friday, the yellow metal prices increased by ₹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% tariff on gold bars exerted downward pressure on gold prices, Gandhi said.

According to the All India Sarafa Association, silver prices depreciated by ₹1,000 to ₹1,14,000 per kg (inclusive of all taxes) on Monday. The white metal had ended at ₹1,15,000 per kg on Friday.

Silver prices rose by ₹5,500 per kg in five straight days to Friday.

In the global market, spot gold fell by $40.61 or 1.19% to trade at $3,358.17 per ounce in New York.

On the multi commodity exchange, gold futures for the October contract depreciated ₹1,280 or 1.26% to trade at ₹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'," 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 an interest rate cut by the 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% to trade at $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 $3,800 per ounce-mark while MCX futures will move higher towards ₹1,10,000 per 10 grams mark from a three month perspective."