Gold, silver rates tumble from record highs as festive glow fades

Gold and silver lost their festive shine this week, tumbling from record highs and snapping a nineweek rally as a strong dollar, easing geopolitical tensions, and falling global prices triggered profit-booking by investors.

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On the Multi Commodity Exchange (MCX), gold futures for December delivery plummeted by Rs 3,557 or 2.80 per cent, during the week to close at Rs 1,23,451 per 10 grams on Friday.

Silver futures also succumbed to profit-taking, with the December contract crashing by Rs 9,134, or 5.83 per cent, to settle at Rs 1,47,470 per kg. Both metals had been on a rise since the week ended on August 22.

Scaling fresh peaks, with gold hit Rs 1,32,294 per 10 grams and silver touched a record Rs 1,70,415 per kg on October 17. Since then, the yellow metal has shed Rs 8,843, or 6.68 per cent, while silver dropped by Rs 22,945, or 13.46 per cent.

Gold took a breather this week after a strong nine-week rally as investors preferred to book profits following weak global trends. Waning festive demand post-Diwali also hit sentiment.