Gold, Silver Prices Fall On MCX As Fed Rate Cut Hopes Fade

Gold and silver prices moved lower on Monday as expectations of a prompt interest rate reduction by the US Federal Reserve diminished.

Investor sentiment also remained cautious due to continuing geopolitical uncertainty in West Asia.

On the Multi Commodity Exchange (MCX), gold futures for the April 2 contract fell by more than 1 per cent, or ₹1,811, and were trading at ₹1,56,655 per 10 grams around 10 AM after touching an intra-day low.

Silver futures for the May 5 contract also witnessed a significant decline, dropping 1.95 per cent or ₹5,068 to ₹2,54,367 per kilogram on the exchange.

In global markets, precious metals registered a similar downward trend. Gold prices slipped by 0.66 per cent to about $5,028 per ounce, while silver prices declined by 0.79 per cent to nearly $80.70 per ounce.

Market analysts stated that the outcome of the upcoming monetary policy meeting of the US Federal Reserve will be a crucial factor in shaping the short-term direction of gold prices.

Persistently high crude oil prices, remaining above $100 per barrel, have strengthened the US dollar, which has added further pressure on gold.

At the same time, the Indian Rupee opened on a weaker note, slipping by 13 paise to 92.43 against the US Dollar during early trading in the interbank foreign exchange market.

The US Dollar Index edged lower by nearly 0.20 per cent but stayed above the 100 level, continuing to weigh on precious metal prices.

Indian equity markets also began the day on a subdued note. The BSE Sensex declined by 148 points, or 0.19 per cent, to open at 74,415.

The Nifty 50 started trading at 23,116, gaining 35 points or 0.15 per cent as investors tracked developments in the ongoing tensions involving Iran, Israel, and the United States.