MCX Gold Slips Below ₹1.19 Lakh After U.S. Fed Rate Cut; Global Prices Edge Higher

Gold prices on the Multi Commodity Exchange of India (MCX) opened sharply lower on Thursday following the U.S. FOMC’s latest policy decision, which triggered volatility across global markets. The decline in gold was mirrored by a fall in silver prices, as traders digested the Fed’s interest rate move and assessed its implications for future monetary policy.

At the opening bell, MCX gold futures fell 1.27% to ₹1,19,125 per 10 grams, compared to the previous session’s close of ₹1,20,666. The downward momentum persisted through early trade, with gold slipping further to ₹1,18,839 per 10 grams at around 9:20 AM — a fall of ₹1,827 or 1.51%. Silver futures also followed suit, opening 0.4% lower at ₹1,45,498 per kilogram, before declining nearly 1% to ₹1,44,670, down ₹1,411 from the previous close of ₹1,46,081.

The drop in domestic precious metal prices came even as global gold rates showed modest gains. In international markets, gold edged slightly higher, buoyed by a mild retreat in the U.S. dollar. A weaker dollar generally supports gold by making it cheaper for investors holding other currencies. However, the gains were capped as investors remained cautious ahead of key developments on the global political and trade front.

Market sentiment was also influenced by anticipation surrounding a potential trade agreement between U.S. President Donald Trump and Chinese President Xi Jinping. The outcome of their discussions was expected to have significant implications for global trade dynamics and, by extension, for commodities such as gold.

The Fed’s rate cut, which was largely in line with market expectations, initially pressured gold prices as investors recalibrated their positions. Lower interest rates typically support the precious metal, as they reduce the opportunity cost of holding non-yielding assets like gold. However, short-term profit-taking and a stronger risk appetite in equities weighed on the bullion market in early trade.

Analysts suggest that while the near-term outlook for gold remains cautious, the broader trend could stay positive if economic uncertainties and geopolitical risks persist. Traders are now keeping a close watch on the dollar’s movement, global growth cues, and central bank policy actions for further direction in bullion prices.