New Delhi, Oct 03: Gold prices fell by Rs 500 to Rs 1,20,600 per 10 grams in the national capital on Friday, ending a five-day record-extending rally, as investors booked profits and a slight recovery in the US dollar weighed on sentiment.
According to the All India Sarafa Association, the yellow metal of 99.9 per cent purity had rallied Rs 1,100 to hit an all-time high of Rs 1,21,100 per 10 grams on Wednesday.
Gold of 99.5 per cent purity also retreated from its peak, slipping Rs 500 to Rs 1,20,000 per 10 grams (inclusive of all taxes). It had closed at Rs 1,20,500 per 10 grams in the previous trading session.
Local bullion markets were closed on Thursday on account of Gandhi Jayanti and Dussehra.
In tandem with gold, silver prices also eased by Rs 500 to Rs 1,50,000 per kilogram (inclusive of all taxes). The white metal had traded flat at Rs 1,50,500 per kilogram on Wednesday, the association said.
“Bullion pulled back from its record high and traded lower on Friday, weighed down by a slight recovery in the US dollar and profit-taking by traders following a five-day rally that set new records,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.
In the international market, spot gold also witnessed a pullback and slipped to USD 3,863.51 per ounce after scaling a record high of USD 3,897.20 per ounce on Thursday.
On a weekly basis, gold remains poised for seven consecutive weeks of gains, its longest winning streak since February 2025, Gandhi noted.
“This rally is supported by persistent demand for safe-haven assets, fuelled by worries about a US government shutdown and ongoing geopolitical and economic uncertainties.
“Inflows into exchange-traded funds and active central bank purchases have also lent support to the uptrend,” he added.
Meanwhile, spot silver in the overseas markets rose nearly 1 per cent to USD 47.34 per ounce after hitting a high of USD 48.10 per ounce on Thursday.
Gandhi said due to the ongoing US government shutdown, market participants are expected to rely more on private sector reports for cues on the labour market and the broader economy. “The shutdown will delay the release of non-farm payroll data scheduled later in the day,” he added.
Renisha Chainani, Head – Research at Augmont, said, “Increased US tariffs raise concerns about international commerce, which increases demand for gold as a hedge against uncertainty, while persistent geopolitical tensions continue to support gold’s attractiveness as a go-to safe-haven asset.”
