Fed Rate Hike Slams Gold, Silver Prices on MCX

The US Federal Reserve's interest rate hike for the first time in three years weighed on gold and silver prices. The MCX (Multi Commodity Exchange) saw a sharp decline, with silver futures down Rs 4,600 to Rs 2,30,221 per kg and gold futures declining by Rs 2,000 to Rs 1,50,483 per 10 grams.

The Fed's decision was unanimous, with policymakers concerned that inflation pressures could worsen. The updated quarterly economic projections showed that 16 of the 18 policymakers expect at least one more quarter-percentage-point rate increase by the end of this year.

Globally, spot gold was up 1.1% to $4,310.49 after touching a near six-week low in the previous session. However, US gold futures for December delivery fell roughly 1% to $4,348.70.