Gold Prices Rebound After Fed Rate Cut, Silver Follows Suit

New Delhi, September 19, 2025: Gold prices broke a three-day losing streak on Friday, mounting a sharp recovery in domestic futures trade as investors engaged to value buying, buoyed by strong global cues following the US Federal Reserve’s recent rate cut.

Domestic Market Performance

On the Multi Commodity Exchange (MCX), October gold futures increased by Rs 572 or 0.52% to Rs 1,09,624 per 10 grams with a turnover of 12,685 lots. The December contract went up by Rs 516 or 0.47% to Rs 1,10,650 per 10 grams.

Silver followed the same upward trend, with December futures climbing Rs 1,668 or 1.31% to Rs 1,28,800 per kg in 17,935 lots. March 2026 contract rose Rs 1,573 or 1.22% to Rs 1,30,224 per kg.

Global Trends

On global trade, gold December futures climbed USD 13.40 or 0.36% to USD 3,691.70 per ounce, while silver futures appreciated 1.22% to USD 42.67 per ounce. The rebound followed the US Federal Reserve’s action to lower its benchmark rate by 25 basis points to 4–4.25%, its first cut since December. Policymakers indicated two more reductions in 2025 but just one in 2026, reflecting a cautious approach amidst lingering inflation.

Fed Chair Jerome Powell defined the action as a “risk-management cut” to counter a softening labour market, but insisted subsequent policy decisions would be based on economic data on a meeting-to-meeting basis.

Market Drivers

Swiss exports of gold to China rose 254% in August from July, indicating strong physical demand in Asia. At the same time, the Bank of England and the People’s Bank of China left their rates stable, also influencing the monetary environment on a global scale.

Year-to-Date Performance

Gold so far in 2025 has advanced about 39%, helped along by hopes for global monetary easing, persistent geopolitical tensions, and strong central bank demand.

REF:

https://www.mcxindia.com/en/market-data/get-quote/FUTCOM/GOLD/03OCT2025

https://www.mcxindia.com/en/market-data/get-quote/FUTCOM/SILVER/05DEC2025

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