Precious metals update: Gold down, silver up ahead of Fed announcement

Cautious trading defined Wednesday’s MCX session as the Federal Reserve’s policy meeting loomed. Gold futures for August delivery recorded a modest decline of 0.21%, settling at Rs 1,41,331 per 10 g. Conversely, silver futures for September edged higher by 0.34%, reaching Rs 2,16,577 per kilogram.

The price spread illustrates a market waiting for the Fed’s interest‑rate outlook, expected to be announced at 11:30 p.m. IST. Most analysts forecast a pause in rate hikes, a stance that traditionally favors gold by lowering its holding cost. However, any deviation could spark rapid price swings.

Across India, 24‑karat gold rates hovered around Rs 1,44,200 per 10 g, while 22‑karat gold lingered near Rs 1,32,200. Silver prices were relatively uniform, staying between Rs 2,19,500 and Rs 2,25,000 per kg depending on the city.

Investors also kept an eye on geopolitical developments in the Middle East, where rising tensions could lift energy costs and revive inflationary pressures, potentially influencing the Fed’s future decisions and, by extension, bullion valuations.