MCX Gold and Silver Prices Recover from Volatility After Fed Rate Decision
On September 18, gold and silver prices on the Multi Commodity Exchange (MCX) recovered from volatility after the US Federal Reserve's rate decision. MCX October gold was trading at ₹1.53 lakh per 10 grams, up 0.66%, while December silver was at ₹2.41 lakh per kg, higher by 1.20%.
Vedika Narvekar, Research Analyst - Commodities & Currencies at Anand Rathi Share and Stock Brokers, attributed the recent support to cooling Treasury yields after their sharp rise around the Fed's rate hike and a decline in oil prices, which has eased some inflation concerns. She also pointed out that continued inflows into gold ETFs despite the volatility of the past two weeks supports the longer-term investment case for the metal.
Gaurav Garg, Head of Research at Lemonn, said both gold and silver were recovering sharply after the recent sell-off as the dollar and US Treasury yields eased. Silver has seen a stronger rebound, he said, due to its industrial use, which makes it more sensitive to economic activity alongside monetary policy and the dollar.