Gold prices fall ₹1,000; silver drops ₹4,500 ahead of Fed policy decision

Gold rates (24K, 99.9% purity) on Tuesday, December 9, declined by ₹1,000 to ₹1,31,600 per 10 gram in Delhi due to muted demand in the domestic market, according to the All India Sarafa Association.

In line with the fall in gold prices, silver also dropped significantly on Tuesday, declining by ₹4,500 to ₹1,80,500 per kg after closing at ₹1,85,000 per kg on Monday. 

In the overseas market, spot gold advanced $14.83 (0.35%) to $4,205.57 per ounce, while spot silver was trading 0.75% higher at $58.59 per ounce. 

Traders remained cautious ahead of the US Federal Reserve policy meeting announcement, a PTI report said. The FOMC will announce its decision on December 10 and is expected to influence market sentiment for the coming weeks, including the start of the new calendar year. 

Investors will closely track the policy decision and Federal Reserve Chair Jerome Powell's press conference for insights on the future trajectory of monetary policy, currencies and bullion prices. 

The surging bond yields in the international markets amid fiscal and inflation concerns are also putting pressure on commodities. 

"Silver prices are stable, supported by risk aversion and anticipation of a 25 basis points rate drop by the Fed at its meeting on December 9-10," the PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying.

Chainani added that traders will closely track the Fed's economic projections (Dot plot) and comments from Powell for clarity on the central bank's outlook for 2026 and beyond.

Gold, silver futures

Gold futures for the February expiry were trading lower on the Multi Commodity Exchange (MCX) on Tuesday, touching an intraday low of ₹1,29,101 per 10 gram during the session. At around 7:30 pm, the contracts were trading flat at ₹1,29,926 per 10 gram (down 0.03%).

However, silver futures were trading higher on the MCX, hitting an intraday high of ₹1,84,163 per kg on Tuesday. At around 7:30 pm, the contracts were trading 1.08% up at ₹1,83,705 per kg.