Gold and Silver Prices Fall on MCX Despite US Fed Rate Cut

Mumbai, Oct 30 : Gold and silver prices opened sharply lower on Thursday on the Multi Commodity Exchange (MCX) after the US Federal Reserve announced a 25 basis point rate cut   its second of the year.
The drop in precious metal prices comes as investors digest the Fed’s cautious approach toward further easing. Gold futures on the MCX opened 1.27% lower at ₹1,19,125 per 10 grams, compared to the previous close of ₹1,20,666. Silver also slipped, opening 0.4% lower at ₹1,45,498 per kilogram, against ₹1,46,081 in the previous session.
By 9:42 AM, gold had extended its losses to trade 1.51% down at ₹1,18,839 per 10 grams, while silver was lower by ₹1,411, or 0.97%, at ₹1,44,670 per kilogram.
In the global market, spot gold inched up 0.2% to $3,937.88 per ounce, while US gold futures for December delivery fell 1.2% to $3,950.70 per ounce. The dollar index slipped 0.2% after hitting a two week high, making gold relatively cheaper for holders of other currencies.
On Wednesday, the Federal Reserve reduced its benchmark interest rate to a range of 3.75%–4.00%, but Fed Chair Jerome Powell’s remarks tempered market expectations for more cuts. Powell noted that officials remain divided on the monetary policy outlook and cautioned that another rate cut later this year is “far from certain.”
Market experts said the Fed’s cautious stance led to profit-booking in precious metals, while optimism surrounding possible trade talks between US President Donald Trump and Chinese President Xi Jinping also reduced safe haven demand.
“Powell’s comments suggested that markets should not assume further policy easing this year, leading to a correction in gold and silver,” analysts added.
With global attention now turning to upcoming US-China discussions, traders are watching closely for developments that could influence safe haven flows and precious metal trends in the coming weeks.