Commodities
Fed Rate Hike Sinks Gold and Silver Prices
The US Federal Reserve raised interest rates for the first time in three years on Wednesday and signaled further tightening. This move weighed heavily on gold and silver prices, causing them to fall sharply.
On the Multi Commodity Exchange (MCX), MCX silver futures for September 2026 delivery dropped by Rs 4,600 to Rs 2,30,221 per kg. Gold futures for October 2026 delivery declined by Rs 2,000 to Rs 1,50,483 per 10 grams.
Despite a two-day decline in oil prices, which eased concerns about supply disruptions, the precious metals continued their downward trend. The Fed's decision effectively acknowledges the inability of the Trump administration to bring inflation under control.