Gold, Silver Prices Tank After US Fed Rate Hold: MCX Update

Bullion markets in Mumbai turned red on Thursday, driven by the US Federal Reserve's rate pause. Gold prices approached 1.52 lakh rupees per 10 grams, with silver breaking below 2.45 lakh per kg amid heightened volatility.

MCX's April 2026 gold contract fell 953 rupees (0.62%) to 1,52,072 rupees at 10:21 AM, after hitting 1,51,712 low and 1,53,025 high. Silver May 2026 futures declined 3,945 rupees (1.59%) to 2,44,249 rupees, trading between 2,43,083 and 2,45,387 rupees.

International spot prices echoed the slide: gold -0.92% at 4,850 USD/oz, silver -2.42% at 75.735 USD/oz. Blame lies with the Fed maintaining 3.5-3.75% rates for the second time, post-2025 reductions.

VT Markets' Justin Khoo, APAC senior analyst, pointed to the decision amid geopolitical strife and inflation resurgence. Fed Chair Powell noted forecast adjustments to one cut from two, fueled by 2.7% inflation estimates linked to the Iran war's oil market havoc over three weeks.

Elevated rates bolster the dollar and treasuries, sidelining gold and silver. Investors now monitor Fed speeches, jobs data, and Middle East developments for reversal signals. This dip offers buying opportunities for long-term holders, but short-term sentiment remains guarded.