Global gold prices dipped to $3,997 per ounce after the US Federal Reserve maintained interest rates while keeping the option open for future hikes. A stronger US dollar continues to put pressure on non-yielding assets like gold. Indian MCX gold futures followed this trend, trading lower at Rs 1,42,351 per 10 grams.
Gold prices faced pressure in global markets on October 30, following the US Federal Reserve’s decision to keep interest rates steady between 3.75% and 4.00%. While the central bank chose not to raise rates immediately, its commentary suggested that further increases remain possible. This approach has strengthened the US dollar, which often creates difficulty for assets like gold that do not generate regular interest payments.
In international markets, spot gold prices declined by 0.59% to $3,997 per ounce. The US dollar index, which measures the currency's strength, was recorded near 102.26. When the dollar rises in value, gold typically becomes more expensive for international buyers, often leading to a drop in demand. Additionally, because gold does not pay interest, money often flows toward government bonds or savings accounts when interest rates are high or expected to stay elevated.
The domestic market in India reflected this global sentiment. MCX gold futures for December delivery fell by 0.17%, reaching Rs 1,42,351 per 10 grams. Silver prices also saw a decline, dropping by 0.27% to Rs 1,88,943 per kilogram. In the previous trading session, spot gold had closed at Rs 1,41,628 per 10 grams.
Traders are now waiting for upcoming US economic data, which will provide more clues about the Federal Reserve's next policy moves in December. This data is essential as it will help determine whether the central bank might pause or continue its current strategy. For now, the gold market appears cautious, with prices likely to stay within a specific range until there is a clearer shift in the US economic outlook. Investors may monitor US data releases as these often drive gold price trends in the short term.