Gold Falls Rs 2,000 as Fed Hikes Rates After Three Years
Indian gold futures dropped Rs 2,000 per 10 grams following the US Federal Reserve's first rate increase in three years. Silver futures declined by Rs 4,600 per kilogram in the same session.
MCX gold futures for October 2026 delivery fell by Rs 2,000 to close at Rs 1,50,483 per 10 grams. Silver futures for September 2026 delivery dropped by Rs 4,600 to Rs 2,30,221 per kilogram.
The decline followed the US Federal Reserve's decision to raise interest rates on Wednesday. This marks the first hike in three years and signals potential further increases in the coming months.
Fed signals continued tightening
The central bank's unanimous decision acknowledges persistent inflation pressure. New chief Kevin Warsh joined the vote to increase borrowing costs.
Updated economic projections show 16 of 18 policymakers expect at least one more quarter-point hike by year-end. Only two officials anticipate rates will remain at current levels.
Global metal prices react
Spot gold rose 1.1% to $4,310.49 after hitting a six-week low previously. US December gold futures fell 1% to $4,348.70.
Spot silver increased 1.4% to $63.83 per ounce. Platinum gained 1.6% to $1,780.55, while palladium climbed 2% to $1,295.00.
Domestic physical prices stable
In Delhi, 24-carat gold costs Rs 1,22,880 per 8 grams. 22-carat gold is priced at Rs 1,12,648 per 8 grams.
Mumbai, Chennai, and Hyderabad show identical pricing for both purities. 24-carat gold stands at Rs 1,22,760 and 22-carat at Rs 1,12,528 per 8 grams.
