Gold Prices Surge Up to 1% Ahead of US Fed Policy Decision

Gold and silver prices surged on Wednesday ahead of the US Federal Reserve's policy decision. The yellow metal, MCX gold futures for October delivery, rose by 0.52% to Rs 1,51,598, while silver futures, December delivery, jumped 1.66% to hit an intraday high of Rs 2,35,988.

The increase in prices was driven by softer crude oil prices and lower US bond yields, which eased pressure on the US dollar and Treasury yields. Analysts said MCX gold opened with a mild gap-up but remained capped by its 50-day exponential moving average.

In the international market, US gold futures for December delivery rose about 1% to $4,380 per ounce. The buying in gold was supported by geopolitical tensions, including the unresolved US-Iran conflict and reports of Houthi drone being intercepted by Saudi Arabia and explosions on Iran's Qeshm Island.