New Delhi: Gold and silver prices opened weaker on the Multi-Commodity Exchange (MCX) on Thursday after the US Federal Reserve trimmed its benchmark lending rate by 25 basis points, while giving cautious signals on future policy moves.
At around 9:05 am, MCX Gold October contracts were trading 0.42% lower at Rs 1,09,362 per 10 grams. Silver also mirrored the trend, with December futures slipping 0.46% to Rs 1,26,403 per kg.
The decline followed a firming of the US dollar, which gained over 0.20% on the back of the Fed’s announcement. A stronger dollar typically puts pressure on bullion as it makes gold more expensive for buyers holding other currencies. In overseas markets, US gold futures for December delivery fell nearly 1% in response to the Fed’s move.
The American central bank hinted at the possibility of two additional rate cuts this year, with meetings lined up for October 28–29 and December 9–10. However, analysts described the Fed’s overall tone as “slightly hawkish,” leading to a cautious response from investors.
Should you buy gold now?
Despite the latest pullback, gold remains one of the top-performing assets in 2025, having rallied nearly 40% year-to-date. The surge has been fueled by geopolitical uncertainty, central bank purchases, and expectations of looser monetary policy globally.
Market experts suggest that while short-term corrections are likely, the long-term trajectory continues to be bullish. “Any dip in prices should be seen as a buying opportunity,” said one commodities analyst, noting that the macroeconomic backdrop remains supportive for bullion.
With volatility expected in the coming weeks, investors are advised to adopt a staggered buying strategy rather than chasing peak levels.
