Gold Climbs 1,291 Rupees as Fed Hike Looms

Gold futures on the Multi Commodity Exchange opened 1,291 rupees higher at 152,100 rupees per 10 grams. The previous close was 150,809 rupees. By 10:00 AM IST, the price had settled at 151,785 rupees. The contract traded within a narrow range, hitting an intraday low of 151,691 rupees. This movement occurred ahead of the scheduled US Federal Reserve policy announcement. The central bank is expected to raise interest rates by 25 basis points. Such a move typically places pressure on precious metal prices. Investors are weighing this macroeconomic risk against current demand levels.

Silver futures also opened firm on the domestic exchange. The benchmark December contract rose 3,667 rupees to 235,785 rupees per kilogram. The previous closing price was 232,118 rupees. At the time of writing, the price stood at 235,200 rupees. The intraday high reached 235,988 rupees, while the low was 234,972 rupees. Global markets mirrored this strength. Gold traded near 4,375 dollars per ounce on Comex. Silver traded near 65 dollars per ounce. These levels reflect a cautious stance ahead of the rate decision.

Global prices track Fed expectations

Comex gold futures opened at 4,333.50 dollars per ounce. The prior close was 4,332.80 dollars. The price gained 42.80 dollars to reach 4,375.60 dollars. Comex silver futures opened at 64.18 dollars per ounce. The previous close was 63.85 dollars. The price increased by 1.36 dollars to 65.21 dollars. The US Federal Reserve decision is the primary driver of these fluctuations. A 25-basis-point hike is widely anticipated. Higher rates increase the opportunity cost of holding non-yielding assets. This dynamic often suppresses metal prices in the medium term. However, short-term volatility remains high as traders position themselves. The market is waiting for explicit signals on the inflation outlook. Any deviation from the expected hike could trigger sharp moves.

Historical peaks remain distant

Current prices are significantly lower than this year's highs. Gold futures on the MCX touched 180,779 rupees per 10 grams earlier in the year. Silver futures reached 420,048 rupees per kilogram during the same period. On the global market, gold peaked at 5,586.20 dollars per ounce. Silver hit a high of 121.79 dollars per ounce. The current trading levels indicate a correction from those peaks. Market participants are now focused on the immediate policy outcome. The gap between current prices and historical highs offers room for further movement. Traders are monitoring the Fed's statement for clues on future path. The direction of interest rates will define the next phase of the market. Domestic and international prices are moving in tandem. The correlation between the two markets remains strong.

Market data from GN auto markets

The figures reported are from the Multi Commodity Exchange and Comex. MCX gold prices are quoted in rupees per 10 grams. MCX silver prices are quoted in rupees per kilogram. Comex prices are quoted in dollars per troy ounce. The data reflects the market status at the time of writing. Source information is provided by GN auto markets and commodities reporting. These numbers represent the last traded prices available. No further updates were recorded before the publication window. The market remains open for trading. Investors are advised to monitor official releases for confirmed details. The data serves as a snapshot of current sentiment. It does not constitute financial advice. All figures are subject to change based on real-time trading activity.