Gold Prices Steady Amid Volatility Ahead of US Federal Reserve Decision
Gold and silver prices on the Multi Commodity Exchange (MCX) were mixed as investors awaited the US Federal Reserve's policy decision. MCX silver futures for September 2026 delivery declined by Rs 1,011 to Rs 2,31,679 per kg over two days, while gold futures for October 2026 delivery held steady at Rs 1,52,608 per 10 grams.
The US central bank's decision is expected on Wednesday after a two-day meeting. Financial markets anticipate Fed policymakers to raise the benchmark rate by 25 basis points to a range of 3.75%-4.00%. Higher interest rates tend to reduce gold's appeal by increasing its opportunity cost, as it does not yield any returns.
US consumer prices accelerated in August, and underlying inflation recorded its biggest increase in four months. Geopolitical tensions rose as Yemen's Iran-aligned Houthis launched attacks on Saudi Arabia. Oil prices increased due to concerns over supply disruptions.