Gold and silver prices saw sharp fluctuations on the MCX after the US Federal Reserve kept interest rates unchanged. A stronger dollar and higher US bond yields added pressure to precious metals.
Highlights
- MCX gold opened flat at ₹1,41,856 per 10 grams.
- MCX silver slipped nearly 0.5% to ₹2,16,376 per kg.
- The US Federal Reserve kept rates unchanged at 3.5%–3.75%.
- The dollar index stayed near 101 after the Fed decision.
- The 10-year US bond yield rose by 6 basis points to 4.68%.
- Gold may rise towards ₹1,45,000 if it stays above ₹1,40,000.
Gold and silver prices witnessed volatility in the domestic commodity market on Thursday after the US Federal Reserve decided to keep interest rates unchanged.
On the Multi Commodity Exchange, or MCX, gold for August delivery opened almost flat at ₹1,41,856 per 10 grams. Silver futures for September delivery fell nearly 0.5% and opened at around ₹2,16,376 per kilogram.
The movement in precious metals came after the US central bank voted 9-3 to maintain its benchmark interest rate in the range of 3.5% to 3.75%. The Federal Reserve has now kept rates unchanged for the fifth consecutive meeting.
Three members of the Federal Open Market Committee supported a 25-basis-point increase in interest rates. The central bank also reiterated its commitment to bringing inflation back to its 2% target.
Following the Fed’s announcement, the US dollar index remained close to the 101 level. The yield on the benchmark 10-year US Treasury bond rose by around 6 basis points to 4.68%.
A stronger dollar and rising bond yields generally put pressure on gold and silver. Higher bond yields make interest-bearing assets more attractive, while a stronger dollar increases the cost of buying precious metals for investors holding other currencies.
According to market experts, MCX gold could move towards ₹1,45,000 per 10 grams as long as it remains above the important level of ₹1,40,000. However, a decisive break below ₹1,40,000 could trigger selling pressure and pull prices towards ₹1,36,000.
Gold currently has support at ₹1,41,100 and ₹1,40,400, while resistance is seen at ₹1,42,650 and ₹1,43,300.
For silver, support levels are placed at ₹2,15,500 and ₹2,13,300. Resistance is expected near ₹2,20,000 and ₹2,23,100.
Precious metal prices are likely to remain sensitive to movements in the dollar, bond yields, inflation data and geopolitical developments in the coming sessions.
