New Delhi, Sep 18: Gold prices fell by ₹600 to ₹1,13,200 per 10 grams in the national capital on Thursday, tracking subdued local demand and a stronger US dollar after the Federal Reserve struck a cautious stance on further rate cuts. The yellow metal of 99.9% purity had closed at ₹1,13,800 per 10 grams in the previous session, the All India Sarafa Association said.
Gold of 99.5% purity also declined by ₹500 to ₹1,12,800 per 10 grams, inclusive of taxes.
“Gold prices weakened after the Fed delivered a 25-basis point cut as expected but signalled caution on future policy easing. The hawkish undertone strengthened the dollar and lifted treasury yields, weighing on bullion,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
The dollar index rose 0.44% to 97.30, further pressuring gold. Spot gold internationally was down 0.15% at USD 3,654.66 per ounce, retreating from a lifetime high of USD 3,707.70 hit on Wednesday.
Despite today’s dip, domestic gold has surged 43.3% or ₹34,250 so far in 2025, from ₹78,950 per 10 grams on December 31, 2024, supported by central bank buying and geopolitical uncertainty.
In contrast, silver rebounded ₹300 to ₹1,31,500 per kg, after losing ₹1,670 in the previous session. Globally, spot silver edged higher to USD 41.68 per ounce. Silver prices in India have gained 46.6% or ₹41,800 per kg this year, from ₹89,700 at the end of 2024.
Fed Chair Jerome Powell described Wednesday’s move as a “risk management step,” stressing future actions would be assessed “meeting by meeting.” Newly appointed Governor Stephen Miran, however, dissented, seeking a deeper 50-basis point cut.
Analysts said traders will now track upcoming US macro data, including jobless claims and the Philadelphia Fed manufacturing index, for fresh cues on the rate trajectory.
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