Gold Retreats ₹1,300 From Peak To ₹1.13 Lakh Per 10 Grams On Profit Booking Ahead Of US Fed Decision; Silver Also Dips

New Delhi, Sep 17: Gold prices retreated from peak levels and traded Rs 1,300 lower at Rs 1,13,800 per 10 grams in the national capital on Wednesday, as investors rushed to book profits ahead of the US Federal Reserve's policy decision.

Decline in 99.5% Purity Gold

According to the All India Sarafa Association, gold of 99.5 per cent purity declined by Rs 1,300 to Rs 1,13,300 per 10 grams (inclusive of all taxes) on Wednesday.

Record Highs Followed By Profit Booking

On Tuesday, the precious metal of 99.9 per cent and 99.5 per cent purity had jumped Rs 1,800 each to touch a lifetime high of Rs 1,15,100 and Rs 1,14,600 per 10 grams, respectively, in the Delhi bullion market.

Market Sentiment Ahead Of Fed Decision

"Gold traded weak on profit booking ahead of the crucial Fed policy decision, as participants trimmed risk before the outcome. The sentiment remains cautious, with markets awaiting not just the rate cut but also the Fed's forward guidance on further easing.

"Any neutral stance or less dovish comments without a clear roadmap for additional rate cuts could trigger a couple of percentage points of downside in bullion," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Silver Also Declines

Silver too gave up gains and drifted lower, with profit-taking weighing on sentiment. The white metal slumped Rs 1,670 to Rs 1,31,200 per kilogram (inclusive of all taxes) on Wednesday. In the previous session, it had scaled a new record of Rs 1,32,870 per kg, after rising Rs 570.

Global Gold and Silver Trends

Globally, gold and silver also witnessed a pullback after hitting fresh peaks, as investors stayed cautious ahead of the Federal Open Market Committee's (FOMC) policy announcement later in the day.

Spot gold slipped nearly 1 per cent to USD 3,664.82 per ounce after scaling an all-time high of USD 3,703.23 per ounce on Tuesday.

US Fed Impact On Market

"Spot gold eased slightly to USD 3,664 per ounce as the dollar attempted a recovery from near its lowest level in three years ahead of the highly anticipated Federal Open Market Committee rate decision.

"Investor attention now turns to Federal Reserve (Fed) Chair Jerome Powell's post-decision press conference and the updated dot plot, with markets seeking guidance on the Fed's policy path through the remainder of 2025," said Kaynat Chainwala, AVP Commodity Research, Kotak Securities.

Also Watch:

Expected Fed Rate Cut

Praveen Singh, Head of Commodities and Currencies at Mirae Asset Sharekhan, said, "The US Fed is expected to slash the benchmark rate by 25 basis points, but Fed governors such as Stephen Miran and Michelle Bowman may dissent to pave the way for aggressive interest rate cuts later." Silver too dropped by nearly 3 per cent to USD 41.38 per ounce.

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