US Fed Rate Hike Sparks Sharp Decline in Gold and Silver Prices
The US Federal Reserve's rate hike announcement led to a sharp decline in gold and silver prices on both domestic and international futures markets. On the Multi Commodity Exchange (MCX), October 5 expiry gold futures contract fell by Rs 19,870 to hit an early low of Rs 1,50,483 per 10 grams, down from its last close of Rs 1,52,470.
Silver futures due to expire on December 4 declined by Rs 4,565 to reach an early low of Rs 2,30,221 per kilogram from its previous closing price of Rs 2,34,786 on MCX. Currently, MCX Gold is trading at Rs 15,0951, down 1 percent or Rs 1,519.00.
MCX Silver was quoted at Rs 2,32,525, falling Rs 2,261 or 0.96 percent. Commodity & Currency Analyst Aamir Makda of Choice Broking noted that the rise in interest rates has pressured gold prices by increasing the appeal of interest-bearing assets.
Gold prices across all purity levels also fell significantly in the domestic retail market. The 24 karat gold rate today is Rs 1,51,550 per 10 grams, while the 22 karat gold rate today is Rs 1,38,921 per 10 grams, according to bullion.co.in.