Fed Rate Hike Expectations Weigh on Gold and Silver Prices on MCX
Gold and silver prices remained rangebound on the Multi Commodity Exchange (MCX) on Tuesday, September 15, due to a surge in the US dollar and bond yields ahead of the Federal Reserve's monetary policy decision. The MCX gold October futures saw a marginal increase of 0.15% to ₹1,51,450 per 10 grams, while the MCX silver December futures declined by 0.09% to ₹2,32,480 per kg.
The rise in dollar and bond yields can be attributed to expectations of rate hikes by the US Federal Reserve. The Fed will announce its policy decision at 11:30 PM IST on Wednesday, following a two-day meeting.
Most experts believe the Fed will lift its benchmark rate by 25 basis points to 3.75%-4.00% range as the Fed's favoured gauge of inflation, the US personal consumption expenditures (PCE) price index, has been above the Fed's long-term 2% inflation target for 65 straight months.