On September 19, 2024, the U.S. Federal Reserve’s decision to cut interest rates by 0.50% had a direct impact on gold prices. The rate cut led to a decline in gold futures in the domestic market. On the MCX exchange, gold futures for December 5, 2024, delivery fell by 0.30% or ₹218, trading at ₹73,489 per 10 grams. Similarly, gold for October 4, 2024, delivery saw a drop of 0.31% or ₹225, trading at ₹72,830 per 10 grams.
Silver prices also followed the downward trend. Silver futures for December 5, 2024, delivery fell by 0.03% or ₹30, trading at ₹88,269 per kilogram on the MCX exchange.
In the global market, the decline in gold prices was more pronounced. On COMEX, gold prices decreased by 0.41% or $10.70, trading at $2,587.90 per ounce. The spot price of gold also saw a fall of 0.15% or $3.79, reaching $2,562.70 per ounce.
Silver prices globally also experienced a decline, with COMEX silver futures down by 0.02% or $0.01, trading at $30.68 per ounce. However, silver spot prices showed a slight increase of 0.87% or $0.26, trading at $30.34 per ounce.
This shift in prices highlights the sensitivity of precious metals to changes in U.S. interest rates, as gold and silver tend to react to fluctuations in the economic landscape. The interest rate cut by the Federal Reserve suggests efforts to stimulate economic activity, but it also puts pressure on non-interest-bearing assets like gold. Investors are closely monitoring these developments, as they indicate potential trends in the global economy and investment strategies.
