Fed Holds Rates Steady, MCX Gold and Silver Prices React

MCX gold and silver prices were volatile on Thursday morning amid an uptick in the US dollar and 10-year bond yields after the US Federal Reserve maintained rates steady.

MCX gold August futures remained almost flat at ₹1,41,856 per 10 grams, while MCX silver September futures declined by 0.51% to ₹2,16,376 per kg around 9:05 AM.

The US Fed kept the federal funds rate steady in a target range between 3.5% and 3.75% for the fifth consecutive policy meeting on July 29. However, three of the 12 policymakers dissented with a unified view of hiking rates by 25 basis points.

Chairman Kevin Warsh reiterated the central bank's commitment to bring inflation back to the 2% target, and investors see a chance of a rate hike at the upcoming September meeting.