MCX gold falls to nearly ₹1.23 lakh; Silver futures also decline amid profit booking

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11% higher at 99.05.

Analysts said the precious metal lost its recovery momentum as the US dollar and Treasury bond yields gained ground.

On the MCX, gold futures for the February 2026 expiry slipped by ₹1,260 or 1.01% to the day’s low of ₹1,24,006 per 10 grams.

Experts added that the prolonged US-China trade standoff remained a key focus for investors, with Washington reportedly mulling new export restrictions ahead of high-level negotiations and a potential meeting between President Donald Trump and Chinese President Xi Jinping at the APEC summit in South Korea next week.

In the international markets, Comex gold futures for December delivery were trading lower by $20.61, or 0.50%, to $4,124.99 per ounce on Friday after nearly a 2% rise in the previous session.

Earlier in the week, gold had plunged nearly 6%, its biggest one-day drop in over a decade, after Trump adopted a conciliatory tone on trade and signalled expectations of a "strong and fair" deal with China.

On the MCX, silver futures for December delivery fell as much as ₹2,732 or 1.84% to an intra-day low of ₹1,45,780 per kilogram on Friday.

The white metal contract for the March 2026 expiry was trading ₹2,584 or 1.72% lower at ₹1,47,500 per kilogram on the MCX.

Analysts said gold and silver came under heavy selling pressure this week due to easing tensions between the US and China.

"At the end of the Diwali festival in India, the world's second-largest gold consumer, physical demand has eased, dragging prices lower. Expectations of progress on a potential US government funding deal and the upcoming inflation data further weighed on sentiment," an expert told PTI.

On October 17, gold and silver (December expiry) touched record highs, with gold hitting ₹1,32,294 per 10 grams and silver touching ₹1,70,415 per kilogram, respectively, on the MCX.

Comex silver futures for December delivery also declined by 1.06% to $48.19 per ounce on Friday in the overseas markets after a 2.15% rise in the previous session.

The white metal had plunged 7.16% to settle at $47.70 per ounce on Tuesday, in its worst day since 2021, from an all-time high of $53.76 per ounce last week, before retreating sharply amid profit booking and a liquidity squeeze in London's silver market.