Gold Slips Rs 612 as Dollar Rebounds; Silver Also Weakens

New Delhi, Sep 18 – The prices of precious metals, gold and silver, continued to fall on the second consecutive day as the US dollar strengthened. The gold prices retrated sharply in the domestic futures trade on Thursday after the Federal Reserve signalled a cautious policy stance that can nullify the recent bullion gains. Silver prices also went down in a similar proportion, with both December and March futures prices slipping by close to 0.50%.

Gold Futures Decline

On the Multi Commodity Exchange (MCX), gold futures for October delivery dropped ₹612 or 0.56% to ₹1,09,210 per 10 grams. The December contract also fell by ₹566 or 0.51% to ₹1,10,300 per 10 grams.

Similar Response by Silver Futures

Silver mirrored the weakness in gold. The December futures slipped ₹604 or 0.48% to ₹1,26,380 per kg, while the March 2026 contract declined ₹630 or 0.49% to ₹1,27,985 per kg.

Fed Cut Announcement Dampens Investor Sentiment

The US Federal Reserve announced a rate cut of 25 basis points, lowering the federal funds rate to 4-4.25%. Even though the markets had already anticipated the move, the outlook for the next year turned less dovish as investors expect only one more possible cut in 2026. This had a direct impact on the bullion’s rally, which had been largely fuelled by aggressive rate cut bets and existing geopolitical concerns.

Globally, gold futures for December delivery fell USD 28.05 or 0.75% to USD 3,689.75 per ounce, after touching a record USD 3,744 in the previous session. Silver retreated 1.05% to USD 41.71 per ounce, down from a 14-year high of USD 43.43 earlier this week.

Dollar Strength Adds Pressure

The dollar index climbed 0.35% to 97.21, adding further pressure on precious metals. The rebound in the greenback followed reassessment of the Fed’s stance, with Chair Jerome Powell describing the move as “risk management” amid labour market weakness. Notably, new Governor Stephen Miran dissented, favouring a deeper 50 bps cut.

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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