SRINAGAR: Gold prices in the national capital fell by Rs 500 to Rs 1,20,600 per 10 grams on Friday, halting a five-day record-breaking rally as investors booked profits and a slight recovery in the US dollar dampened sentiment.
According to the All India Sarafa Association, as per Moneycontrol, the yellow metal of 99.9 per cent purity had surged Rs 1,100 on Wednesday to an all-time high of Rs 1,21,100 per 10 grams. Gold of 99.5 per cent purity also slipped by Rs 500 to Rs 1,20,000 per 10 grams, after closing at Rs 1,20,500 in the previous session. Local bullion markets were shut on Thursday owing to Gandhi Jayanti and Dussehra.
Silver prices followed suit, declining by Rs 500 to Rs 1,50,000 per kilogram, compared to Rs 1,50,500 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 after a sustained five-day rally,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Internationally, spot gold slipped to USD 3,863.51 per ounce after scaling a record USD 3,897.20 per ounce on Thursday. Despite the pullback, gold remains on track for its seventh consecutive week of gains, marking the longest winning streak since February 2025.
Analysts attributed the uptrend to sustained safe-haven demand amid concerns over a possible US government shutdown, global geopolitical tensions and economic uncertainties. Strong inflows into exchange-traded funds and continued central bank purchases have also supported prices.
Meanwhile, spot silver in overseas markets edged up nearly 1 per cent to USD 47.34 per ounce after touching a high of USD 48.10 on Thursday.
Gandhi said the US government shutdown could delay the release of key labour data, forcing traders to rely on private sector reports for economic cues.
Renisha Chainani, Head of Research at Augmont, added that increased US tariffs and global trade concerns, along with geopolitical strains, continue to bolster gold’s appeal as a safe-haven asset.