Gold prices fall Rs 2,000/10 gram, silver dips Rs 4,600/kg as US Fed hikes rate after 3 years. Time to sell?

Gold and silver prices opened sharply lower on the Multi Commodity Exchange on Thursday, as the US Federal Reserve’s first rate hike in three years and signals of further tightening weighed on the precious metals, despite a two-day decline in oil prices.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 4,600 to Rs 2,30,221 per kg. Gold futures for October 2026 delivery declined by Rs 2,000 to Rs 1,50,483 per 10 grams.

Oil prices declined further, extending the previous session’s losses, after reports that Saudi Arabia was offering additional crude cargoes through Oman eased concerns about supply disruptions. While gold is widely viewed as a hedge against inflation, higher interest rates can reduce its appeal by making interest-bearing assets more attractive.


The Fed raised interest rates on Wednesday and signalled that more hikes could come in the months ahead. New U.S. central bank chief Kevin Warsh joined a unanimous decision that effectively acknowledges the Trump administration’s inability so far to bring inflation under control, with policymakers concerned that price pressures could worsen.

The Fed’s updated quarterly economic projections showed that 16 of its 18 policymakers expect at least one more quarter-percentage-point rate increase by the end of this year. Only two policymakers expect rates to remain at their current levels.

Gold, silver international prices

Spot gold was up 1.1% at $4,310.49 after touching a near six-week low in the previous session. U.S. gold futures for December delivery, however, fell roughly 1% to $4,348.70.

Other precious metals also moved higher. Spot silver rose 1.4% to $63.83 an ounce, platinum gained 1.6% to $1,780.55 and palladium climbed 2% to $1,295.00.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,335-4,284 per troy ounce, while resistance is seen at $4,400-4,444. Silver has support at $63.40-62.50 per troy ounce, with resistance at $65.80-67.00.

On the MCX, gold has support at Rs 1,51,000-1,49,650 and resistance at Rs 1,53,300-1,54,400, while silver has support at Rs 2,32,000-2,29,100 and resistance at Rs 2,37,000-2,40,000.

Jain said long-term investors can accumulate gold and silver during the current market fall, while traders should wait for the outcome of tomorrow's BOJ policy meeting before taking fresh positions in the two precious metals.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,12,648/8 grams while pure gold (24 carat) prices stand at Rs 1,22,880/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,12,528/8 grams while pure gold (24 carat) prices stand at Rs 1,22,760/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,12,528/8 grams while pure gold (24 carat) prices stand at Rs 1,22,760/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,12,528/8 grams while pure gold (24carat) prices stand at Rs 1,22,760/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)