Gold and Silver Rebound Amid Rate Concerns

Gold and silver futures rose on Friday, September 25, despite concerns over higher interest rates.

The US Federal Reserve's decision to raise its policy rate to 3.75-4.00 per cent has put pressure on precious metals. The stronger dollar and elevated US bond yields have also reduced the attractiveness of non-interest-bearing assets like gold.

However, buying at lower levels helped both metals open higher. On the Multi Commodity Exchange (MCX), the benchmark October gold contract opened ₹300 higher at ₹1,51,010 per 10 gram, while the December silver contract opened ₹254 higher at ₹2,33,736 per kg.

According to Vikram Subburaj, CEO of Giottus.com, 'the pressure on precious metals was mainly due to increased concerns over the direction of US interest rates.'