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Gold and silver prices declined on the MCX on Wednesday ahead of the US Federal Reserve’s policy decision. While gold slipped marginally, silver remained range-bound as investors stayed cautious.
Precious Metals Decline Amid Fed Caution
New Delhi: Gold prices fell in early trade on the Multi Commodity Exchange (MCX) on Wednesday. Investors appeared cautious ahead of the US Federal Reserve's interest rate decision. MCX Gold April futures were trading 0.21% lower at ₹1,55,662 per 10 grams at around 9:15 am.
Silver prices also weakened along with gold. MCX Silver May futures fell 0.76% to ₹2,51,200 per kilogram. However, silver prices traded in a narrow range. Spot silver also fell 0.4% in the international market to around $79 per ounce.
The US Federal Reserve (FOMC) meeting is scheduled for today, which is being closely watched by markets worldwide. It is expected that the Fed will not make any changes to interest rates this time. However, investors are paying close attention to the Fed's future signals and its stance on inflation.
Rising crude oil prices and ongoing tensions in the Middle East have raised fears of rising inflation. The US-Iran conflict, in particular, has further increased market uncertainty. This has limited the decline in gold and silver prices, as these metals are also seen as safe investments.
Gold and silver prices have been experiencing significant fluctuations for some time. Global political tensions and rising crude oil prices have made the market volatile. Investors are looking for safe investment options, leading to continued volatility in precious metals.
Experts believe that the direction of gold and silver prices in the coming days will largely depend on the Fed's decision and global conditions. Investors are advised to closely monitor market movements and global cues and invest wisely.
