Gold and silver prices have fallen after the Fed's 0.25% interest rate cut. On MCX, the price of gold for the October contract fell to ₹1,09,258 per 10 grams and silver to ₹1,26,055 per kg. A softening in gold rates was also observed in Delhi, Mumbai, Kolkata, and Chennai.
Gold Price: Gold and silver prices saw a reversal after the US Federal Reserve cut interest rates by 0.25%. On MCX, the price of gold in the October contract fell to Rs 1,09,258 per 10 grams, and the price of silver dropped to Rs 1,26,055 per kg. Gold rates for 24-karat and 22-karat are trading with a softening trend in the country's major cities, including Delhi, Mumbai, Kolkata, and Chennai. The impact of the Fed's rate cut is being felt by investors and the bullion market.
Impact of Fed's Decision
Last Wednesday, the US central bank, the Fed, announced a 0.25 percent cut in interest rates. Following this decision, investor reactions in the global market were mixed. Gold prices saw a softening, and silver prices also declined. The impact of the Fed's interest rate cut was also felt in the Indian market.
Gold-Silver Prices on MCX
According to data from the Multi Commodity Exchange (MCX) at 9:44 AM, gold prices for the October contract fell by 0.51 percent. The price of gold dropped to Rs 1,09,258 per 10 grams. Meanwhile, silver prices experienced a sharp decline of 0.73 percent, falling to Rs 1,26,055 per kg.
Prices per Gram in Major Cities of the Country
Fluctuations were observed in gold prices across various metropolitan cities of the country. In Delhi, the price of 24-karat gold was recorded at Rs 11,132 per gram, Rs 10,205 per gram for 22-karat gold, and Rs 8,347 per gram for 18-karat gold.
In Mumbai, the price of 24-karat gold was Rs 11,117 per gram, Rs 10,190 per gram for 22-karat, and Rs 8,338 per gram for 18-karat gold. Similar rates were observed in Kolkata.
In Chennai, 24-karat gold traded at Rs 11,149 per gram, 22-karat at Rs 10,220 per gram, and 18-karat at Rs 8,470 per gram.
Reasons for Decline in Gold Prices
Experts suggest that the Fed's interest rate cut has impacted the dollar's standing. A weaker dollar index and shifting investor priorities have led to a softening in gold prices. Furthermore, the strength of the stock market globally and a decrease in investor demand for gold in search of returns also contributed to this decline.
Silver Prices
The decline in silver prices was slightly sharper compared to gold. Global economic indicators and a decrease in industrial demand are also being blamed for this. Silver is also used in industries, and its demand can be affected amidst economic uncertainties.
