On the Comex global market, gold is trading near $4,320 an ounce, while silver is trading near $6.85 an ounce
The US Fed hiked interest rates; gold, silver price drop: The US Federal Reserve has raised interest rates by 25 basis points due to lack of inflation on Wednesday. The decision marked the first major monetary policy shift under Fed chair Kevin Warsh, since 2023. The Fed signalled that interest rates may rise again in coming months.
After a two-day meeting on Wednesday, the Federal Open Market Committee raised the benchmark interest rate by 25 basis points to a range of 3.75%-4.00%. The move marks a significant shift for the US central bank, which had kept rates unchanged through its recent meetings as it assessed the impact of higher energy prices, tariffs and broader price pressures on the economy.
On Thursday, gold and silver prices fell sharply after the market opened. On the Comex global market, gold is trading near $4,320 an ounce, while silver is trading near $6.85 an ounce. Gold futures were trading at Rs 1,50,950, while silver futures were trading around Rs 2,32,550 at the time of writing on the domestic market, MCX.
This is the first increase in interest rates since Kevin Warsh became Fed chairman. President Donald Trump chose him as Fed Chairman. Trump has been talking about lowering interest rates in the US for a long time. But due to high inflation, the Fed has decided to increase interest rates instead of reducing them.
The decision comes as consumer inflation remains stubbornly elevated. Consumer inflation stood at 3.4% in August, unchanged from the previous month and still well above the Fed’s 2% target. Inflation has been pushed higher due to rising energy prices, tariffs, and strong demand from the AI sector.
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