Gold Prices Surge on MCX Ahead of Fed Rate Decision

Gold prices increased by Rs 170 to Rs 73,264 per 10 grams on the MCX due to a bullish trend in international markets ahead of the US Federal Reserve's interest rate decision. Meanwhile, silver prices declined slightly. Analysts expect further increases if the Fed decides on a rate cut.

Gold prices surged by Rs 170 to Rs 73,264 per 10 grams on the Multi Commodity Exchange (MCX) on Wednesday, buoyed by a bullish trend in international markets ahead of the US Federal Reserve's interest rate decision.

In futures trading, gold contracts for October delivery rose by 0.23 per cent, closing at Rs 73,264 per 10 grams, up from Rs 73,094 in the previous session. Conversely, silver contracts for December delivery dipped by Rs 116, or 0.13 per cent, to Rs 89,024 per kilogram.

Globally, gold was trading 0.42 per cent higher at USD 2,603.20 per ounce. Demand optimism amid geopolitical tensions, a feeble global growth outlook, and hopes of a Fed rate cut have driven prices up. Analysts noted a potential super-sized rate cut could further boost gold's investment demand.

(With inputs from agencies.)