Gold and silver prices fell sharply on Thursday following the US Federal Reserve’s decision to keep interest rates unchanged at 3.5–3.75 pc. Gold futures on MCX dropped 1pc to Rs 1,51,712, while silver declined 2 pc to Rs 2,43,083
-1773899757985_d.png "Fed freeze sends gold and silver tumbling while Middle East tensions keeps oil prices soaring")
Gold and silver retreat after Fed decision. File Pic
Gold and silver prices witnessed a sharp fall on Thursday following the US Federal Reserve’s latest policy decision announced overnight, even as escalating geopolitical tensions in the Middle East kept bullion in focus.
On the Multi Commodity Exchange (MCX), gold futures (April 2) were trading around 1 per cent, or Rs 1,313, lower at Rs 1,51,712, hitting an intraday low at around 10:22 am. Similarly, silver futures (May 5) declined to Rs 2,43,083, down 2 per cent or Rs 5,111.
As widely expected, the US Federal Reserve kept key interest rates unchanged for the second consecutive policy meeting this year, after implementing three successive rate cuts of 25 basis points each in late 2025.
The Federal Open Market Committee (FOMC), in its March 18 meeting, maintained the benchmark federal funds rate in the range of 3.5 per cent to 3.75 per cent, in line with market expectations amid rising inflation risks linked to geopolitical developments.
However, despite the supportive backdrop, international bullion prices remained under pressure. At around 10:30 am, gold was trading down 0.92 per cent at USD 4,850 per ounce, while silver declined 2.42 per cent to USD 75.73 per ounce.
According to Ponmudi R, CEO of Enrich Money, COMEX gold is holding above key short-term support levels, with the broader trend remaining constructive amid geopolitical tensions.
“The USD 4,850–USD 4,900 range remains a crucial resistance band. A sustained move above USD 4,900 could push prices towards USD 4,950–USD 5,000, while a break below USD 4,800 may accelerate weakness,” he said.
On the domestic front, he noted that MCX gold is trading above the Rs 1,50,000–Rs 1,52,000 support zone, with resistance seen around Rs 1,55,000–Rs 1,56,000. A sustained move above Rs 1,57,000 could strengthen bullish momentum.
For silver, Ponmudi said COMEX silver is holding above the USD 74–USD 75 support band, with resistance placed in the USD 78–USD 80 zone. A breakout above USD 80 may trigger further upside, while a breach below USD 75 could resume the corrective decline.
He added that MCX silver remains under pressure, trading within the Rs 2,42,000–Rs 2,40,000 support band, with near-term resistance at Rs 2,47,000–Rs 2,50,000. A breakdown below Rs 2,40,000 may lead to further downside.
Meanwhile, oil prices surged by up to 5 per cent.
Brent crude futures jumped nearly 5 per cent to USD 112.83 per barrel, close to their all-time high of USD 112.87. Meanwhile, WTI crude futures were trading at USD 100.02 per barrel.
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