Gold, Silver Rise on MCX as Markets Await US Fed Rate Decision

Gold and silver opened higher in the domestic futures market on Wednesday, September 16, as traders headed into the US Federal Reserve’s policy decision with crude oil prices easing and US bond yields coming off recent levels. 

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MCX gold October futures were trading at ₹1,51,667 per 10 grams at around 9:10 am, up about 0.57%. Silver saw a stronger move, with the December contract rising 1.31% to ₹2,35,159 per kg. 

The gains came after a volatile run for precious metals, with the Fed decision now taking centre stage. The US central bank is expected to raise interest rates by 25 basis points on Wednesday. US inflation has remained above the Fed’s 2% target for 65 consecutive months. 

Global gold prices move higher 

Gold was also firmer overseas. US gold futures for December delivery rose 1.3% to $4,381.65 per troy ounce. 

Moves elsewhere in global markets provided some support. Crude oil prices fell by about 1%, limiting the rise in the dollar index, while the US 10-year Treasury yield slipped below 4.9%. 

Those shifts came just hours before the Fed’s decision, leaving precious metals sensitive to changes in interest-rate expectations, the dollar and bond yields. 

Geopolitical developments remain in the picture 

The US-Iran conflict continues to form part of the backdrop for bullion markets. 

The report cited media reports that Saudi Arabia had intercepted a Houthi drone south of Mecca, while explosions were reported on Iran’s Qeshm Island. 

Energy markets are also watching developments around Saudi Arabia’s East-West oil pipeline. The US Energy Secretary indicated that the key pipeline could resume operations within days. 

With oil prices easing in Wednesday’s session but geopolitical uncertainty still present, gold and silver moved higher in early MCX trade. The next major cue for the metals market will come from the Federal Reserve’s policy decision later in the day.