Gold futures drop as traders book profits for second day

New Delhi, Dec 19 (PTI) Gold prices dropped Rs 783 to Rs 1,33,738 per 10 grams in the futures trade on Friday as traders continued profit booking for the second consecutive day amid weak global cues.

On the Multi Commodity Exchange (MCX), gold futures for February delivery declined by Rs 783, or 0.58 per cent, to Rs 1,33,738 per 10 grams in a business turnover of 15,457 lots.

Silver futures, however, showed mixed trends. The white metal opened lower in the morning trade but later turned positive. The metal for the March 2026 contract surged by Rs 1,628, or 0.8 per cent, to Rs 2,05,193 per kilogram in 13,157 lots.

In the international markets, Comex gold futures for February delivery slipped by USD 10.1, or 0.23 per cent, to USD 4,354.4 per ounce.

"Gold traded around USD 4,350 per ounce, near its October record high and on track for a second weekly gain, as softer-than-expected US inflation strengthened expectations of further interest-rate cuts," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Meanwhile, US inflation data showed that consumer price inflation for November slowed to 2.7 per cent, below market expectations of 3.1 per cent, while core CPI eased to 2.6 per cent, its slowest pace since March 2021.

Trivedi added that the data reinforced expectations that price pressures are easing, and strengthened the case for potential Federal Reserve rate cuts.

However, he noted that the data was partly constrained by a federal shutdown, which disrupted the Bureau of Labor Statistics' collection of October prices and month-on-month analysis.

Meanwhile, silver futures for March 2026 contract was trading 1.37 per cent higher at USD 66.11 per ounce in the overseas trade.

"Investors are currently pricing a probability of 25 per cent chance of a rate cut in January (by the US Fed), with near certainty by April. Also, rising geopolitical tensions have also supported the white metal prices," he said. PTI HG TRB