Gold retreats from record highs; declines ₹606 to ₹1,07,122/10 g on profit-booking

Gold prices retreated from record highs by declining ₹606 to ₹1,07,122 per 10 grams in the domestic futures market on Monday, as investors booked profits in tandem with a weak trend in the international markets.

On the Multi Commodity Exchange (MCX), gold futures for October delivery declined ₹606 or 0.56% to ₹1,07,122 per 10 grams. It had surged to a lifetime high of ₹1,07,807 per 10 grams on Friday. Similarly, the precious metal futures for December delivery slipped ₹612 to ₹1,08,176 per 10 grams.

Silver too witnessed a pullback after touching a fresh peak last week.

The white metal futures for December delivery dropped ₹977 or 0.78% to trade at ₹1,23,720 per kilogram. Silver had scaled a record ₹1,26,300 per kg on September 3.

On Saturday, bullion prices in the spot markets rose to hit fresh peaks in the national capital. Gold of 99.9% and 99.5% advanced ₹900 each to hit a fresh high of ₹1,07,870 per 10 grams and ₹1,07,000 per 10 grams, respectively, according to the All India Sarafa Association.

Silver prices jumped ₹1,400 to hit a fresh peak of ₹1,27,000 per kilogram in New Delhi.

In the overseas markets on Monday, Comex gold futures for December delivery fell 0.68% to USD 3,628.35 per ounce after scaling a record USD 3,655.50 per ounce in the previous session. Spot gold eased to USD 3,584.40 per ounce in the global markets.

The PBoC on Sunday said it has added purchases of gold to its reserves in August, extending it into a 10th consecutive month, as per the official data.

China's gold reserves stood at 74.02 million fine troy ounces at the end of August, up from 73.96 million at the end of July.

The gold reserves were valued at USD 253.84 billion as compared to USD 243.99 billion at the end of the previous month, according to the data.

Also, Comex silver futures slipped 0.7% to trade at USD 41.26 per ounce in the international markets. Spot silver eased by 0.88% to USD 40.64 per ounce.

Last week, gold and silver continued their upward momentum, with the precious metal touching a fresh record high and silver scaling a 14-year peak in global markets.

According to the World Gold Council, central banks' purchases of gold globally have slowed as prices surged, although geopolitical risks are likely to sustain demand.

On the market outlook, global investment bank Goldman Sachs said in a note that gold could rally towards USD 5,000 per ounce if the Fed's independence comes under threat and investors move even a small share of holdings from Treasuries to bullion.