Fed Rate Hike Triggers Gold and Silver Price Plunge in India

Gold and silver prices plummeted on Thursday in India as the US Federal Reserve hiked interest rates for the first time in three years, signaling further tightening. The rate hike weighed heavily on precious metals, despite a decline in oil prices.

The MCX gold futures for October 2026 delivery fell by Rs 2,000 to Rs 1,50,483 per 10 grams, while silver futures for September 2026 delivery dropped by Rs 4,600 to Rs 2,30,221 per kg. This is in contrast to international prices, where spot gold was up 1.1% at $4,310.49.

Manoj Kumar Jain of Prithvi Finmart noted that gold has support at $4,335-4,284 per troy ounce and resistance at $4,400-4,444, while silver has support at $63.40-62.50 per troy ounce with resistance at $65.80-67.00.

Jain advised long-term investors to accumulate gold and silver during the current market fall, but recommended that traders wait for the outcome of tomorrow's BOJ policy meeting before taking fresh positions in the two precious metals.