World · India Bureau
Gold, silver prices surge ahead of Fed rate decision
Precious metals extended gains in Indian markets with gold futures climbing nearly Rs 1,300 to breach the Rs 1.51 lakh mark, while silver surged Rs 3,800 per kilogramme as investors await the US Federal Reserve's interest rate announcement.
LSN India ·
Gold futures on domestic exchanges rallied sharply, climbing Rs 1,300 to settle at Rs 1,52,100 per 10 grammes, extending the precious metal's recent upward momentum. Silver prices displayed even stronger gains, jumping Rs 3,870 per kilogramme to touch Rs 2,35,988, reflecting heightened investor interest in traditional safe-haven assets.
The rally in precious metals came as market participants positioned themselves ahead of a crucial policy decision from the US Federal Reserve. Interest rate announcements from the American central bank typically influence global commodity prices and currency movements, making them critical events for Indian investors holding gold and silver.
The surge in bullion prices underscores investor appetite for defensive assets amid economic uncertainty. Gold and silver traditionally benefit from lower interest rates, which reduce the opportunity cost of holding non-yielding precious metals. A softer Fed stance could further support prices, while hawkish signals may temper the rally.
Domestic demand for precious metals in India remains robust, driven by jewellery consumption, investment demand, and cultural preferences. The price movements on futures exchanges often influence spot market rates and retail jewellery prices across the country, affecting consumers and retailers alike.