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Gold Steady, Silver Dips as Fed Decision Looms
16 Sep
Summary
- Gold prices remained steady while silver declined on MCX.
- Investors await the US Federal Reserve's policy decision on Wednesday.
- Rising Treasury yields and geopolitical tensions increase market volatility.
Gold prices saw little change on the Multi Commodity Exchange (MCX) on Wednesday, September 16, 2026, with silver futures for September 2026 delivery decreasing by Rs 1,011 to Rs 2,31,679 per kg. Gold futures for October 2026 delivery saw a slight increase of Rs 20 to Rs 1,52,608 per 10 grams. This price movement reflects investor caution ahead of the US Federal Reserve's policy announcement, expected on Wednesday, September 17, 2026, following a two-day meeting.
Market participants widely anticipate a 25 basis point interest rate hike by the Fed, bringing the benchmark rate to a range of 3.75%-4.00%. This anticipated move, coupled with escalating geopolitical tensions, particularly fresh attacks by Yemen's Houthi rebels on Saudi Arabia, contributes to market volatility. Furthermore, US 10-year Treasury yields recently surpassed the 5% threshold for the first time since October 2023, potentially impacting equity markets.
Analysts suggest that gold, typically a hedge against inflation and geopolitical risks, faces reduced appeal due to rising interest rates, which increase the opportunity cost of holding non-yielding assets. The recent acceleration in US consumer prices in August, reported on Friday, September 12, 2026, further complicates the economic outlook. Traders are advised to monitor crude oil prices and the dollar index, and await the FOMC meeting outcome before making new positions.
