New Delhi: The Federal Reserve of the United States, in its FOMC meeting on Wednesday, announced the rate cut of 25 basis points, taking the interest rate in the range between 4.00 percent and 4.25 percent while simultaneously signaling two more prospective cuts in 2025. This has led to the dip in the gold and silver prices.

Subsequently, the rate cut has led to a decline in gold and silver prices today, September 18, wherein gold slipped by about 0.52 percent to Rs 109250 per 10 grams and silver slipped 0.76 percent to Rs 126021 per kg on the MCX (Multi Commodity Exchange) in early trade.

Gold rates in India largely are a reflection of global gold price trends. Domestic gold prices are further shaped by import duties, GST, and fluctuations in the rupee-dollar exchange rate. Seasonal demand also plays a big role, with gold prices often rising during festivals, weddings, and periods of high investment interest.

In the international market, gold prices have softened after hitting record levels of high. On Wednesday, US gold touched $3,707.40 per ounce but has since dipped 0.2 percent to $3,654.29 per ounce. Analysts attribute this to the US Federal Reserve’s monetary stance, which has strengthened the dollar and led to the downward pressure on the prices of gold.

In India, gold is more than just adornment. It is a trusted investment and a symbol of financial security. Households often purchase it during festive and auspicious occasions. Timely investments in gold and silver can serve as a safeguard, offering stability during both economic growth and downturns.