In a move that rattled bullion traders, gold and silver prices tumbled in Thursday’s trading amid fallout from the US Federal Reserve’s rate decision. Domestic prices saw gold stabilize around 1.52 lakh per 10 grams, while silver breached the critical 2.45 lakh per kg support level.
MCX data showed the gold contract for April 2026 down 953 rupees or 0.62% at 1,52,072 rupees by mid-morning. The metal swung from 1,51,712 to 1,53,025 rupees in early deals. Silver’s May 2026 futures shed 3,945 rupees or 1.59%, closing at 2,44,249 rupees, with extremes of 2,43,083 and 2,45,387 rupees.
Global cues mirrored the weakness, with gold off 0.92% at 4,850 dollars/oz and silver down 2.42% at 75.735 dollars/oz. The Fed’s choice to maintain rates at 3.5-3.75%—unchanged for the second straight meeting—dashed hopes for imminent easing.
Previous cuts in late 2025 had buoyed markets, but inflation woes and the Iran conflict have shifted the outlook. Analyst Justin Khoo from VT Markets highlighted how Powell’s comments on slashed rate cut expectations, tied to a 2.7% inflation uptick from oil shocks, underscore the Fed’s cautious path.
As markets digest this, attention turns to oil dynamics and US data releases. Higher-for-longer rates typically pressure non-yielding assets like gold, prompting shifts to interest-bearing alternatives and amplifying the day’s declines.