Gold, silver futures retreat from record highs on profit booking as Fed rate decision looms

Gold and silver prices eased from their record highs in futures trade on Wednesday as traders booked profits at elevated levels, dragging both precious metals into negative territory ahead of the keenly awaited US Federal Reserve monetary policy outcome.

On the Multi Commodity Exchange (MCX), gold futures for October delivery fell ₹259 or 0.24% to ₹1,09,897 per 10 grams, as investors trimmed their positions after the yellow metal touched a lifetime high of ₹1,10,666 per 10 grams on Tuesday.

Similarly, the December contract for gold futures declined ₹232 or 0.21% to ₹1,10,953 per 10 grams after scaling a record peak of ₹1,11,703 per 10 grams in the previous session.

Silver too retreated from its peak, with profit-taking weighing on sentiment.

The white metal futures for December delivery dropped ₹1,267 or nearly 1% to ₹1,27,553 per kilogram. The March next year contract for silver futures also declined ₹1,169 or 0.9% to ₹1,29,160 per kg on the MCX.

In the international markets, gold and silver futures witnessed a pullback after hitting lifetime highs, with traders staying cautious ahead of the Fed’s policy decision.

Gold futures for December delivery were quoted 0.19% lower at USD 3,718.10 per ounce after scaling a fresh peak of USD 3,739.90 per ounce on Tuesday.

Silver futures fell 1.20% to USD 42.40 per ounce. In the previous session, it had hit a 14-year high of USD 43.43 per ounce.

Meanwhile, the US and China meet are showing some optimism regarding possible first steps taken towards the trade deal between the two major economies. Along with the Fed meeting, the Bank of England and the Bank of Japan's policy meeting this week will also be under the radar for the investors.