Gold continues to slide as Fed trims interest rates again
Gold prices on the Multi Commodity Exchange (MCX) fell sharply for the fifth session in a row on Thursday, as the US Federal Reserve announced another rate cut. The move rattled precious metals globally, triggering a wave of selling in domestic futures.
Gold futures for December delivery dropped as much as ₹2,001 or 1.66% to hit an intraday low of ₹1,18,665 per 10 grams. This marks a steep correction from its record high of ₹1,32,294 on October 17.
Meanwhile, contracts for February 2026 expiry were also down by ₹1,720 or 1.41%, trading near ₹1,20,150 per 10 grams.
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Why are gold prices falling?
The slide came after the US Federal Reserve cut its benchmark interest rate for the second consecutive meeting, bringing it down to 3.75%–4%. The move was approved by a 10–2 vote in the Federal Open Market Committee (FOMC).
Fed Chair Jerome Powell said that while inflation has “eased somewhat,” it remains above target. He also signaled caution over another rate cut in December — a statement that added to market uncertainty.
Lower interest rates generally make non-yielding assets like gold more attractive. But in this case, analysts say profit-taking and a stronger dollar weighed on investor sentiment.
Silver mirrors the downtrend
Silver futures also joined the fall. Contracts for December delivery dropped 1.15% to ₹1,44,402 per kilogram, while March 2026 futures were down 1.3% at ₹1,45,637.
The white metal has been under pressure due to weaker industrial demand and global economic concerns.
Geopolitical tension still a wild card
Despite the decline, some analysts believe geopolitical uncertainties could limit further downside. The White House’s cancellation of a meeting between US President Donald Trump and Russian President Vladimir Putin — following new sanctions on Russian oil firms — might lend some support to safe-haven demand.
The ongoing US–China trade dialogue also adds complexity. Following talks in South Korea, both nations agreed to “almost everything,” with China pledging to keep rare earth mineral exports steady — a key point for US industries.
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The bottom line
Gold’s five-day losing streak reflects how sensitive global markets are to central bank cues and political developments. For now, traders are keeping a close eye on the Fed’s December stance, US inflation data, and geopolitical headlines for the next big move.
