Gold prices retreated from peak levels and traded Rs1,300 lower at Rs1,13,800 per 10 grams in the national capital, as investors rushed to book profits ahead of the US Federal Reserve’s policy decision.According to the All India Sarafa Association, gold of 99.5 per cent purity declined by Rs1,300 to Rs1,13,300 per 10 grams.

On Tuesday, the precious metal of 99.9 per cent and 99.5 per cent purity had jumped Rs1,800 each to touch a lifetime high of Rs1,15,100 and Rs1,14,600 per 10 grams, respectively, in the Delhi bullion market. Silver too gave up gains and drifted lower, with profit-taking weighing on sentiment. The white metal slumped Rs1,670 to Rs 1,31,200 per kilogram.

In the previous session, it had scaled a new record of Rs ,32,870 per kg, after rising Rs 570.Spot gold slipped nearly 1 per cent to $3,664.82 per ounce after scaling an all-time high of $3,703.23 per ounce on Tuesday. Silver too dropped by nearly 3 per cent to $41.38 per ounce.”Gold traded weak on profit booking ahead of the crucial Fed policy decision, as participants trimmed risk before the outcome.

The sentiment remains cautious, with markets awaiting not just the rate cut but also the Fed’s forward guidance on further easing. “Any neutral stance or less dovish comments without a clear roadmap for additional rate cuts could trigger a couple of percentage points of downside in bullion,” said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.