Gold and silver prices may see some relief over the next one to two days following the U.S. Federal Reserve's decision to cut interest rates by 25 basis
points. With this quarter-percentage-point cut, the interest rate range now lies between 4 per cent and 4.25 per cent. The decision was approved by an 11-to-1 vote, with Governor Stephen Miran advocating for a larger, 50 basis point cut.
Expert Insights: How the 25 bps Fed cut affects gold and silver
Market expert Anuj Gupta told ET Now Swadesh that gold and silver prices may witness some profit booking in the near term, following the recent 25 basis point rate cut by the U.S. Federal Reserve. According to him, the rate cut could temporarily weigh on precious metal prices, although the broader long-term outlook remains positive.He said, "It could lead to some profit booking in gold and silver over the next one to two days. Despite this short-term correction, he emphasised that the long-term trend for both precious metals remains strong."
Intraday Recommendation
On the intraday trading side, Anuj Gupta has recommended a sell position of both gold and silver.He suggested a sell position in Gold MCX with a target of Rs 1,09,200 and a stop loss at Rs 1,11,000. Similarly, for Silver MCX, he recommended a sell with a target of Rs 1,26,000 and a stop loss at Rs 1,28,500.
Gold and Silver performance
Spot gold surged to a record high of USD 3,707.40 on Wednesday, driven by a softer US dollar and declining Treasury yields.
On the domestic front, gold prices on the Multi-Commodity Exchange (MCX) also reached an all-time high of Rs 1,10,666 on September 16.
Meanwhile, silver hit its record peak on the MCX at Rs 1,26,730 per kg on September 9, 2025.
Fed Rate Cut decision
The US Federal Reserve on Wednesday announced its first interest rate cut of 2025, lowering the benchmark federal funds rate by 25 basis points to a range of 4 to 4.25 per cent. The decision, detailed in the Federal Open Market Committee (FOMC ) statement, marks a clear shift in monetary policy after more than a year of holding rates steady.The decision was approved by an 11-to-1 vote, with Governor Stephen Miran advocating for a larger, 50 basis point cut.
The rate cut could provide some relief to consumers through potentially lower mortgage and loan rates.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
