Silver futures retreat from record high as profit-taking halts rally

New Delhi: Silver prices on Tuesday retreated from their record high to Rs 1,78,777 per kilogram and gold futures declined to Rs 1,30,266 per 10 grams as traders booked profits in tandem with a weak trend in global markets.

On the Multi Commodity Exchange (MCX), silver futures for March 2026 delivery tumbled by Rs 3,253, or 1.79 per cent, to Rs 1,78,777 per kilogram in 14,678 lots. The white metal snapped a seven-day winning streak after hitting a lifetime high of Rs 1,82,998 per kg on Monday, when it surged by Rs 8,017, or 4.6 per cent.

Gold futures also moved lower with the February 2026 delivery falling by Rs 386, or 0.3 per cent, to Rs 1,30,266 per 10 grams in a business turnover of 13,413 lots on the MCX.

In the international market, gold and silver futures also retreated after recent gains as traders opted to lock-in profits amid renewed uncertainty ahead of the US Federal Reserve's (Fed) monetary policy meeting next week.

On Comex, gold futures for December delivery slipped by USD 20.1, or 0.47 per cent, to USD 4,219.2 per ounce.

In addition, silver futures also went lower by USD 1.4, or 2.48 per cent to USD 56.97 an ounce, retreating from a record high of USD 58.47 per ounce in the previous trading session.

The March 2026 contract for the white metal also declined by USD 1.3, or 2.2 per cent, to USD 57.84 per ounce, after touching a lifetime high of USD 59.43 an ounce on Monday.

"Gold fell to USD 4,210 per ounce as investors took profits on Tuesday after prices reached a six-week peak in the previous session, amid mounting expectations of a US interest rate cut next week," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

On Monday, the US Federal Reserve Chair Jerome Powell avoided commenting on the state of the economy or the central bank's monetary policy at an event at Stanford University.

His remarks came ahead of the crucial Fed policy meeting next week, where traders are expecting a high probability of another rate cut.

"Traders currently assign an 88 per cent probability to a 25 basis points reduction at the Fed’s upcoming meeting, reinforced by weak US economic data and dovish comments from several Fed officials.

"Economic data on Monday showed the US manufacturing sector contracted for the ninth consecutive month in November, increasing pressure on the Fed to ease policy," Trivedi said.

He added that upcoming US data, including the November ADP employment figures and the delayed September Personal Consumption Expenditures (PCE) inflation report, will be crucial in determining the Fed's policy trajectory and the short-term direction for bullion prices.

"The data will influence expectations about the Fed's rate-cut path, which, in turn, will drive the US Dollar and provide a short-term direction to the commodity prices," Trivedi added.