Mumbai, Oct 30: Gold and silver prices opened sharply lower on Thursday on the Multi Commodity Exchange (MCX) after the US Federal Reserve announced a 25-basis point rate cut.

The decline in precious metals came as investors assessed the Fed’s cautious stance on future rate cuts. Gold futures on MCX opened 1.27% lower at ₹1,19,125 per 10 grams, compared to the previous close of ₹1,20,666.

Silver prices also slipped, opening 0.4% lower at ₹1,45,498 per kilogram, against the previous close of ₹1,46,081. By 9:42 AM, gold had fallen further — trading lower by ₹1,827 or 1.51%, at ₹1,18,839 per 10 grams. Silver was down ₹1,411 or 0.97%, at ₹1,44,670 per kilogram.

In the international market, gold prices showed a mild uptick supported by a weaker US dollar. Spot gold rose 0.2% to $3,937.88 per ounce, while US gold futures for December delivery fell 1.2% to $3,950.70 per ounce.

The dollar index declined 0.2% after hitting a two-week high, making gold cheaper for investors holding other currencies.

On Wednesday, the US Federal Reserve announced its second interest rate cut of the year, reducing the benchmark rate to 3.75%–4.00%. However, Fed Chair Jerome Powell took a cautious tone, noting divisions among officials about future policy moves and stating that another cut this year was “far from certain.”

Globally, investors are also watching the US-China trade developments, as discussions between President Donald Trump and President Xi Jinping may lead to a potential trade deal.

Experts said, “The Fed Chair’s cautious tone on further easing triggered profit-taking, while optimism over US-China trade talks reduced safe-haven demand.”