Gold prices on the Multi Commodity Exchange of India (MCX) traded higher on Wednesday, following gains in international bullion prices, ahead of the US Federal Reserve meeting outcome.
MCX gold rate opened flat at ₹1,19,647 per 10 grams, as against its previous close of ₹1,19,646. MCX silver price opened higher at ₹1,44,761 per kg as compared to its previous close of ₹1,44,342.
At 9:08 AM, MCX gold rate was up by ₹401, or 0.34%, at ₹1,20,047 per 10 grams, while MCX silver price was trading higher by ₹989, or 0.69%, at ₹1,45,331 per kg.
In the global markets, gold prices inched higher ahead of a widely expected US Fed rate rate cut, although easing US-China trade tensions kept bullion strength in check.
Spot gold price rose 0.2% to $3,957.42 per ounce, after dropping to its lowest point since October 7 on Tuesday. US gold futures for December delivery eased 0.3% to $3,971.20 per ounce.
The US Fed is widely expected to cut interest rates by a quarter-percentage point at the end of its policy meeting on Wednesday, and investors are watching out for any forward-looking language from Fed Chair Jerome Powell.
The European Central Bank is expected to leave rates unchanged at its policy meeting on Thursday.
Gold prices have climbed about 52% year-to-date, reaching an all-time peak of $4,381.21 on October 20, bolstered by geopolitical and economic uncertainties, rate-cut bets and sustained central bank buying, Reuters reported.
Gains in gold prices were also supported by the escalation in the geopolitical tensions in the Middle East as Israeli planes launched strikes in Gaza after Israel accused the militant group Hamas of violating the ceasefire.
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