Gold prices fell by ₹612 to ₹1,09,210 per 10 grams in domestic futures trade on Thursday, as speculators reduced their positions following a robust recovery in the dollar, impacted by the US Federal Reserve’s cautious policy stance which dampened recent gains in bullion.
On the Multi Commodity Exchange (MCX), gold futures for October delivery decreased by ₹612, reflecting a 0.56 percent decline to reach ₹1,09,210 per 10 grams. Similarly, the December contract saw a dip of ₹566 or 0.51 percent, settling at ₹1,10,300 per 10 grams.
Silver prices also experienced a downturn. Futures for December delivery fell by ₹604, accounting for a 0.48 percent drop, resulting in a price of ₹1,26,380 per kilogram. The March contract of the following year diminished by ₹630 or 0.49 percent, to ₹1,27,985 per kg.
“The Federal Reserve announced its first 25 basis point rate cut of 2025, in line with market expectations. However, the policy outlook for 2026 was less dovish, with markets now anticipating only one potential rate cut next year,” stated Deveya Gaglani, Senior Research Analyst – Commodities at Axis Securities. This shift contributed to the downward pressure on bullion prices, which had previously risen sharply amid expectations for aggressive rate cuts and increasing geopolitical tensions.
The Federal Reserve reported on Wednesday that economic activity moderated during the first half of the year, job gains slowed, the unemployment rate edged up, and inflation remained elevated. “In light of the shift in risk balance, the Committee decided to lower the target range for the federal funds rate by 0.25 percentage points to 4-4.25 percent,” the US central bank commented.
Market experts noted that the central bank has signaled the potential for two more rate cuts this year, which could support gold prices in the medium term.
Globally, gold futures for December delivery declined by $28.05, or 0.75 percent, to $3,689.75 per ounce, following a record high of $3,744 in the previous session. Silver futures fell by 1.05 percent to $41.71 per ounce, retreating from a 14-year peak of $43.43 earlier this week.
Fed Chair Jerome Powell described the recent decision as “risk management” amidst weakness in the labor market, emphasizing a cautious approach to easing. Notably, newly appointed Governor Stephen Miran dissented, advocating for a more significant cut of 50 basis points.
The dollar index, which measures the strength of the dollar against a basket of six currencies, increased by 0.35 percent to 97.21, further pressuring bullion prices. Jigar Trivedi, Senior Research Analyst at Reliance Securities, remarked that the dollar index remained above 97 after a significant rebound in the prior session, as investors reassessed the Federal Reserve’s policy trajectory.
Published on September 18, 2025.
