Gold & Silver Futures Drop Ahead of Fed Outcome

New Delhi, Dec 9 (PTI) Gold and silver prices declined in the futures trade on Tuesday as investors booked profits and adopted a cautious stance ahead of the outcome of the US Federal Reserve's policy meeting.

On the Multi Commodity Exchange (MCX), the yellow metal futures for February delivery declined by Rs 718, or 0.55 per cent, to Rs 1,29,244 per 10 grams in a business turnover of 13,208 lots.

Silver futures also extended its losses for the second straight session. The white metal for the March 2026 contract plunged by Rs 1,042, or 0.46 per cent, to Rs 1,80,700 per kilogram in 13,823 lots. Silver had hit its record of Rs 1,85,234 per kg on Friday.

"Gold and silver witnessed mild profit-taking as traders awaited the FOMC meeting and a rebound in US Treasury bond yields," Rahul Kalantri, VP Commodities at Mehta Equities Ltd, said.

The US Federal Reserve's two-day policy meeting begins later on Tuesday, with the rate decision and Chair Jerome Powell's speech due on Wednesday. The outcome is expected to offer clues on the central bank's stance heading into 2026.

He added that investor sentiment weakened after reports that the US Producer Price Index (PPI) data for October and November, earlier scheduled for release this week, will now be released in January, raising uncertainty over inflation and the Fed's next steps.

"However, continued gold buying by China for the 13th straight month and tightness in physical silver supply may offer downside support," Kalantri said.


In the international market, Comex gold futures for February delivery slipped by USD 13.9, or 0.33 per cent, to USD 4,203.8 per ounce from Monday's closing of USD 4,217.7 per ounce.

"Gold prices are trading slightly lower from the recent highs, amidst a rise in US bond yields, as traders look to 2026, beyond a near-certain rate cut at the Fed's December meeting," Manav Modi, Commodities Analyst – Precious Metal at Motilal Oswal Financial Services Ltd, said.

Meanwhile, Kevin Hassett, a potential successor to Fed Chair Jerome Powell, said it would be irresponsible to lay out a plan for rate cuts over the next six months.

Comex silver futures for March delivery were trading marginally higher at USD 58.43 per ounce in the overseas trade. The metal had reached an all-time high of USD 59.90 per ounce on Friday.

Manav Modi of MOFSL said the central bank buying and exchange-traded funds (ETF) inflows remain supportive for the bullion prices. The People's Bank of China added to its gold reserves for the 13th consecutive month, taking its holdings to about 74.12 million ounces.

"Silver ETF also saw robust inflows, with iShares adding 324 tonnes of silver in the last week, its largest weekly inflow since July. This raise reportedly means iShares' holdings now represent about 47.5 per cent of all silver stored in London vaults," he added.

iShares is a collection of exchange-traded funds and index mutual funds managed by BlackRock.