Fed Keeps Interest Rates Steady; Gold and Silver Prices Fluctuate on MCX

Gold and silver prices on the Multi Commodity Exchange (MCX) were volatile on Thursday, July 30, after the US Federal Reserve kept interest rates steady. The Fed maintained its federal funds rate in a target range between 3.5% and 3.75% for the fifth consecutive policy meeting.

The decision sparked an uptick in the US dollar index, which hovered near the 101 mark, while 10-year bond yields climbed by 6 basis points to 4.68.

Maintenance of steady interest rates was not unanimous among Fed policymakers, as three out of 12 dissented with a unified view of hiking rates by 25 basis points.

The US dollar's rise and higher bond yields had a negative impact on gold prices, causing them to hover near ₹1,41,856 per 10 grams. MCX silver September futures were down 0.51% at ₹2,16,376 per kg around 9:05 AM.

The Fed's decision has market participants eyeing the upcoming September meeting, where a rate hike is possible. The release of June's U.S. Personal Consumption Expenditure (PCE) data and the advance estimate of Q2 2026 GDP may also influence investor sentiment.