SRINAGAR: Gold futures on the Multi Commodity Exchange (MCX) declined nearly one per cent on Thursday, retreating from the previous session’s record high as investors booked profits amid easing geopolitical tensions and a stronger US dollar.
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Concerns over a possible US–EU trade dispute softened after US President Donald Trump moderated his remarks on the acquisition of Greenland, helping calm global markets.
MCX gold February contracts fell 0.78 per cent to Rs 1,51,665 per 10 grams, while MCX silver March futures dropped 0.62 per cent to Rs 3,16,509 per kilogram.
Internationally, gold prices also edged lower, with US gold futures consolidating between $4,790 and $4,800 per troy ounce, after touching a fresh record high above $4,887 earlier this week on COMEX.
Market analysts said the decline reflected routine profit booking following the sharp rally, though the broader bullish trend remains intact. Futures market data showed open interest slipping to 9,870 lots, indicating long unwinding without fresh long additions, according to Choice Broking commodity and currency analyst Aamir Makda.
COMEX silver, however, remained firm near $92–$93 per ounce after recently hitting record highs above $95.80. Analysts attributed the strength to sustained industrial demand from sectors such as solar power, electric vehicles, artificial intelligence and electronics, along with safe-haven buying amid tightening global supplies.
The US dollar traded steady after Trump said tariffs would not be imposed on European nations in connection with Greenland. The dollar index rose to 98.81, making gold marginally costlier for overseas buyers.
Speaking at the World Economic Forum in Davos, Trump said force would not be used to acquire Greenland and added that a framework for a future deal had been discussed with NATO Secretary General Mark Rutte.
Investors are now awaiting key US economic indicators, including the November Personal Consumption Expenditures (PCE) inflation data and weekly jobless claims, due later in the day.
Most market participants expect the US Federal Reserve to keep interest rates unchanged at its January 27–28 policy meeting, though two rate cuts are anticipated later in the year.