Gold and silver prices retreated from their record highs during futures trading on Wednesday as traders realized profits at elevated levels, pulling both precious metals into negative territory ahead of the highly anticipated monetary policy announcement from the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures for October delivery dropped by ₹259, or 0.24%, settling at ₹1,09,897 per 10 grams, after the yellow metal reached an all-time high of ₹1,10,666 per 10 grams on Tuesday. Similarly, the December contract for gold futures decreased by ₹232, or 0.21%, to ₹1,10,953 per 10 grams following its record peak of ₹1,11,703 per 10 grams in the previous session.
Silver prices also fell, influenced by profit-taking that affected market sentiment. The December futures for silver declined by ₹1,267, nearly 1%, to ₹1,27,553 per kilogram, while the March contract for silver futures dropped by ₹1,169, or 0.9%, to ₹1,29,160 per kg on the MCX.
“After hitting record highs in the domestic market, investors booked profit at higher levels, which weighed on sentiment, leading both metals to trade in the red as traders turned cautious ahead of the US Federal Reserve meeting,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd. Kalantri noted that the dollar index and US 10-year Treasury yields fell amid strength in the Euro and expectations of multiple rate cuts by the Fed, lending support to bullion prices. However, a robust rupee limited the upside in domestic markets.
In international markets, gold and silver futures experienced a pullback following their recent highs, as traders remained cautious ahead of the Fed’s policy decision. Gold futures for December delivery were quoted 0.19% lower at $3,718.10 per ounce after reaching a fresh peak of $3,739.90 per ounce on Tuesday. Silver futures fell 1.20% to $42.40 per ounce, having previously hit a 14-year high of $43.43 per ounce.
Manav Modi, Research Analyst – Precious Metal at Motilal Oswal Financial Services, emphasized that investors will closely monitor the Federal Reserve’s policy meeting later tonight, where a highly anticipated rate cut of 25 basis points may be announced. Modi added that comments from Fed Chair Jerome Powell, the dot plot, and economic forecasts will be pivotal and could induce market volatility.
Additionally, there are signs of optimism surrounding a potential trade agreement between the US and China. Modi noted that discussions regarding the Federal Reserve, alongside meetings from the Bank of England and the Bank of Japan this week, will also attract investor attention.
Published on September 17, 2025.
