Fed Rate Decision Sparks Gold and Silver Sell-Off
The US Federal Reserve's decision to keep interest rates unchanged has sent gold and silver prices tumbling. On Thursday, gold futures on the Multi Commodity Exchange (MCX) traded around 1% lower at Rs 1,51,712, while silver futures declined by 2% to Rs 2,43,083.
The Fed's decision was widely expected, but it failed to provide the boost that investors were hoping for. Despite escalating geopolitical tensions in the Middle East, gold prices remained under pressure, trading down 0.92% at $4,850 per ounce, while silver declined by 2.42% to $75.73 per ounce.
Ponmudi R, CEO of Enrich Money, noted that COMEX gold is holding above key short-term support levels, but warned that a break below $4,800 could accelerate weakness. He also predicted that a sustained move above $4,900 could push prices towards $4,950-$5,000.
Oil prices, on the other hand, surged by up to 5% due to geopolitical tensions and supply concerns.