MCX Gold and Silver Prices Fall After U.S. Fed Decision and New Tariffs by Trump

Gold and silver prices are trading lower on Thursday following key developments in the United States, including the Federal Reserve's decision to keep interest rates unchanged and new trade tariffs announced by former U.S. President Donald Trump on India and other countries.

At the start of trading on the Multi-Commodity Exchange (MCX), gold prices fell to Rs 98,900 per 10 grams, slightly below the previous close of Rs 98,983. Silver saw a sharper drop, opening over 1% lower at Rs 1,12,108 per kilogram, compared to the previous day's close of Rs 1,12,864.

By 12.30 PM, gold prices on MCX were down by Rs 156, or 0.16%, trading at Rs 98,827 per 10 grams. Silver continued its downward trend, falling by Rs 1,705, or 1.51%, to Rs 1,11,159 per kilogram.

Why MCX Gold Prices are Down?

Experts say the dip in gold prices was expected after the Federal Reserve decided not to cut interest rates, with less chance of a rate cut in September. However, gold may still attract buyers at lower prices due to strong demand in India ahead of the festive season and continued purchases by global central banks.

"The Fed held interest rates steady for the fifth consecutive meeting at 4.25%-4.50%, despite pressure from political quarters, signaling a cautious stance amid moderate economic activity and sticky inflation. Two dissenting votes favoring a rate cut reflected growing internal divergence," said Ajay Kedia, Director of Kedia Advisory.

Outlook on the MCX Gold:

Looking ahead, market attention is focused on upcoming U.S. economic data, including personal consumption expenditure (PCE) figures and the monthly jobs report. These numbers could influence expectations around interest rates and impact gold and silver prices further.

The Federal Reserve held interest rates steady, as widely anticipated, further dampening safe-haven demand. On the domestic front, MCX Gold slipped back below the Rs 99,000 mark. Looking ahead, the U.S. Non-Farm Payroll data due this week will be a key trigger, as it could influence the Fed's stance in its upcoming policy meeting, said Deveya Gaglani, Senior Research Analyst - Commodities, Axis Securities.

"Technically, the market is witnessing long liquidation, with open interest falling by 1.03% to 11,905 contracts. Gold now finds immediate support at 98,550, with a break possibly testing 98,110. Resistance is at 99,635, and a move above could push prices towards 1,00,280," said Ajay Kedia of Kedia Advisory.

In uncertain times, gold often performs well as investors seek safety, especially when interest rates are low. However, with the Fed signaling a pause in rate cuts, traders may remain cautious in the coming days.

Global Gold Prices + Spot Silver Price Today:

In global markets, gold rebounded slightly after hitting a one-month low in the previous session. Spot gold rose 0.80% to $3,301.15 per ounce, while U.S. gold futures slipped 0.10% to $3,349.45 at 12:20 PM.

Meanwhile, spot silver is up by 0.012% to $37.17 an ounce, steadying after falling more than 2% in the previous session.

Disclaimer
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