MCX Gold extends losses for fifth session as US Fed cuts key interest rates; Silver also declines

The most-traded December contract had hit a record high of ₹1,32,294 per 10 grams on October 17.

On the MCX, yellow metal contracts for the February 2026 expiry declined as much as ₹1,720 or 1.41% to trade at the day’s low of ₹1,20,150 per 10 grams.

The Federal Open Market Committee (FOMC), led by Federal Reserve Chair Jerome Powell, reduced the borrowing rate to a range of 3.75%-4% by a 10-2 vote, stating that job gains have slowed and inflation remains somewhat elevated. However, Powell raised doubts over another rate cut in December.

Meanwhile, US President Donald Trump and Chinese President Xi Jinping concluded their meeting in South Korea, with the former adding that the two “agreed to almost everything.” The meeting focused on China's export control of rare earth minerals, with the US president saying that “ they’re going to keep those flowing, which is quite important.”

The US also reduced the tariff rate on China to 47%, from the previous 57%.

On the MCX, silver futures for December delivery slipped as much as ₹1,679 or 1.15% to an intra-day low of ₹1,44,402 per kilogram.

White metal contracts for the March 2026 expiry were trading ₹1,925 or 1.3% lower at ₹1,45,637 per kilogram on the MCX.

However, persistent geopolitical risks remain, especially after the US Senate again failed to clear a Republican-backed bill to end the government shutdown.

Furthermore, the White House cancelled a planned meeting between the US President and Russian President Vladimir Putin after fresh sanctions were imposed on Moscow's top oil companies, which might continue to support the precious metal, according to experts.