Gold Prices Plunge 0.6% Ahead of US Fed Interest Rate Decision

Gold and silver prices dropped on Wednesday, July 29, ahead of the US Federal Reserve's interest rate decision. Investors became cautious, causing a slight decline in precious metals. On the Multi Commodity Exchange (MCX), gold was trading at ₹1,42,600 per 10 grams, down nearly 0.6% or ₹850-₹900 from the previous day.

The MCX silver prices were also affected, falling to around ₹2,20,800 per kg, a decline of nearly 1% or ₹2,200. Market experts predict that gold and silver may stay volatile in the short run due to investors' reactions to the Fed's policy announcement.

If the interest rates are expected to remain higher for longer, it could keep downward pressure on precious metals. However, more dovish signals from the Fed might help precious metals bounce back.