Gold, Silver Stay Rangebound on MCX as Dollar and US Bond Yields Rise Ahead of Fed Decision

Gold and silver had a quiet start on the Multi Commodity Exchange (MCX) on Tuesday, September 15, with neither metal moving decisively in early trade. A firmer US dollar and rising American bond yields kept prices in check as markets waited for the US Federal Reserve’s monetary policy decision. 

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MCX gold October futures were trading 0.15% higher at ₹1,51,450 per 10 grams. Silver moved the other way, though the decline was marginal, with December futures down 0.09% at ₹2,32,480 per kg around the time cited in the report. 

Gold and Silver Remain Restricted by US Dollar and Yield on Bonds 

The dollar index increased by 0.20%, further putting pressure on gold prices. Meanwhile, the yield on the US ten-year Treasury broke past the mark of 5% for the first time since October 2023. 

These developments took place at a time when the market was assessing the prospects of rising interest rates in the US amid worries about inflation before the decision of the Fed. 

This development restricted gold and silver from having any significant movement during the trading session. While gold could manage to trade positively on MCX, silver traded negatively. 

Fed Policy Takes Centre Stage 

Attention has now shifted to the Federal Reserve’s monetary policy decision. Expectations around interest rates have become an important factor for precious metals, particularly as the dollar and Treasury yields move higher. 

Gold and silver have already seen volatile trading recently as expectations of interest-rate increases have grown globally. Tuesday’s narrow movement on MCX continued that pattern, with traders holding back from taking the metals sharply in either direction before the US central bank’s decision. 

For the session, the contrast remained limited: gold was modestly higher at ₹1,51,450 per 10 grams, while silver stood slightly lower at ₹2,32,480 per kg, leaving both metals largely confined to a narrow range.