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Gold Rises on Fed Pause; Silver Dips on Karwa Chauth
30 Oct
Summary
- Gold futures climbed on MCX following the US Federal Reserve's rate hold.
- Silver prices continued to decline on Karwa Chauth despite the Fed's decision.
- Retail gold rates in India were higher than MCX-implied rates on October 29, 2026.
On Thursday, October 29, 2026, gold prices on the Multi Commodity Exchange (MCX) experienced an increase, influenced by the US Federal Reserve's decision to keep interest rates unchanged. This development occurred on Karwa Chauth, a festival where gold and silver purchases are traditional in many Indian households.
MCX gold futures for December 2026 delivery traded higher, while silver futures continued to face downward pressure. The US Federal Reserve's decision to maintain its benchmark interest rate between 3.75% and 4% provided some support to gold. However, silver's decline highlights its industrial demand sensitivity, distinct from gold's precious metal status.
Retail gold prices in India on October 29, 2026, were observed to be higher than the per-gram rates implied by MCX futures contracts. Similarly, silver retail prices also saw a decrease, offering some relief to consumers during the festive period. Analysts suggest that a stronger dollar could weigh on gold, while policy outlook might influence its recovery.
