Gold and silver prices traded with increased volatility on the Multi Commodity Exchange (MCX) on Thursday morning, pressured by a strengthening US dollar and rising Treasury yields.
The market turbulence followed the US Federal Reserve's decision to maintain its benchmark interest rates unchanged, a move that reinforced the dollar's appeal and weighed on non-yielding assets.
4% in May, the highest level since October 2023, signaling persistent underlying price pressures.
MCX gold August futures hovered near flat territory at ₹1,41,856 per 10 grams, while silver September futures declined 0.51% to ₹2,16,376 per kilogram around 09:05 AM.
The price action reflects the immediate repricing of risk assets in response to the central bank's policy stance, which has shifted market focus toward upcoming economic data releases.
The Federal Reserve's decision to hold rates steady has intensified scrutiny on the Personal Consumption Expenditures (PCE) price index, the central bank's preferred inflation gauge.
Recent data showed the core PCE index rising to an annual rate of 3.4% in May, the highest level since October 2023, signaling persistent underlying price pressures.