Gold, Silver Prices Rise on MCX as Fed Rate Cuts Expectations Grow
Gold and silver prices rose on the Multi Commodity Exchange (MCX) due to several factors. Cooling United States inflation figures, rising market expectations of Federal Reserve interest rate cuts, heightened geopolitical tensions in West Asia, and expanding industrial consumption for silver are all contributing to the surge.
The US Bureau of Labor Statistics reported a drop in headline consumer price index (CPI) to an annual rate of 3.40 per cent in July 2026, while producer prices remained unchanged. This has led market participants to adjust their monetary policy outlook, with traders assigning a 69.90 per cent probability that the US Fed will hold interest rates steady at their next meeting on September 16.
Analysts point out that a softer US dollar and reduced Fed rate-hike expectations are driving the gains in gold and silver prices. 'Lower rate-hike odds reduce the opportunity cost of holding non-yielding metals, and that is what is supporting both gold and silver,' said Kaynat Chainwala, AVP - Commodity Research at Kotak Securities.