MCX Gold Prices Fall Ahead of US Fed Interest Rate Hike
Gold and silver prices on the MCX declined ahead of the crucial US Federal Reserve meeting on Wednesday. With markets pricing in a 90% chance of a 25-basis-point interest rate increase, investors are adjusting their positions, putting pressure on precious metals.
The rise in US Treasury yields to above the 5% level is making government bonds more attractive compared to assets like gold and silver, which do not earn interest. This shift in capital is keeping prices of bullion under pressure as investors move money toward higher-yielding assets.
On the Multi Commodity Exchange (MCX), the October gold contract opened at ₹1,51,115 per 10 grams, reflecting a decline of ₹115. Silver futures also faced a downward trend, with the December contract opening at ₹2,32,229 per kg, down by ₹461.