Gold Prices Slide Ahead of US Federal Reserve Interest Rate Decision

Gold and silver prices took a hit on July 29 as investors became cautious ahead of the US Federal Reserve's interest rate decision. On the Multi Commodity Exchange (MCX), both precious metals were trading lower in early trade, following weak global signals and a stronger US dollar.

The retail gold price levels remained high despite recent corrections, with 24-carat gold priced at ₹1,40,330 for 10 grams and 22-carat gold at ₹1,33,650 per 10 grams across various markets. The MCX Gold (August Futures) was trading around ₹1,42,600 per 10 grams, down nearly 0.6% or ₹850-₹900 from the previous day.

Market experts suggest that gold and silver may remain volatile in the short run as investors react to the Fed's policy announcement. If interest rates are expected to stay higher for longer, it could put downward pressure on precious metals, even if traders seek relief. On the other hand, more dovish signals could help precious metals bounce back.