Gold, Silver Prices Under Pressure Following US Fed Meeting

Gold and Silver Prices Update (March 18)

The gold and silver prices experienced a decline in Thursday's trading session following the US Federal Reserve's policy decision in the overnight session. The high crude oil prices amid the US-Iran war kept bullion in the spotlight.

US Federal Reserve Decision The US Federal Reserve maintained a status quo on the federal funds rate for the second consecutive policy decision, keeping the target range at 3.5% to 3.75%. This decision is largely in line with market expectations, given the increased risk of inflation driven by a war in the Middle East.

Market Impact The US spot gold rate today was $4,836/oz, down 1.22%, while spot silver traded more than 2.25% lower at $75.75/oz. Gold prices have remained lacklustre in March, shedding nearly 4%. Meanwhile, silver prices have lost 16% during the same period.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Commodity Prices on MCX On the Multi Commodity Exchange (MCX), gold prices are hovering around ₹155,000 per 10 grams, and silver was at ₹250,000 per kg.

Market Analysis The recent volatility in the precious metals market is largely attributed to investor sentiment ahead of the US Federal Reserve's upcoming policy decision, which has created a cautious atmosphere especially amid rising inflation concerns linked to high oil prices stemming from geopolitical tensions in the Middle East.