Gold, silver prices today: Comex gold and silver recover as Fed keeps rates unchanged, dollar weakens | Stock Market News
Gold and silver prices rebounded in Wednesday's trade, recovering from earlier losses after the U.S. Federal Reserve left benchmark interest rates unchanged, dashing expectations of a rate hike and pushing the dollar and Treasury yields lower.
Comex gold futures jumped $77 or 2% per troy ounce to an intraday high of $4,115, while silver futures rebounded $2 or 3.5% to $59.40 per troy ounce. Both precious metals have fully recovered the losses recorded in the previous session.
The U.S. Federal Reserve left its benchmark interest rate unchanged at 3.50%-3.75%, while its outlook for inflation, unemployment, and economic activity remained largely unchanged from the June meeting.
Three of the 12 policymakers dissented from the majority decision, calling for a 25-basis-point rate hike.
On inflation, the Federal Reserve said price pressures remain elevated relative to the Committee's 2% target, partly reflecting supply shocks that have driven price increases in certain sectors, including energy. It reiterated that the Committee remains committed to restoring price stability.
The central bank's assessment comes as inflation has continued to run above its 2% target for an extended period. Most policymakers have recently argued that a further rate hike may be needed to bring inflation back to the desired level.
Reacting to the Fed's policy decision, the U.S. Dollar Index fell to 101.2 on Wednesday, extending its pullback after touching a 15-month high of 101.6 in the previous session.
A weaker dollar typically supports gold prices by making the precious metal cheaper for holders of other currencies.
Meanwhile, geopolitical tensions escalated after U.S. President Donald Trump said in an interview with Fox News that Iran was "going to get a beating" following attacks on U.S. forces.
Speaking to Fox News, Trump said the overnight attacks had been intercepted, described Iran-backed militias as "a cancer on the world," and said U.S. strikes on Iran-backed groups in Iraq were carried out in coordination with Baghdad. He also reiterated that diplomatic talks with Tehran would continue despite the latest escalation.
Following Trump's remarks, Brent crude, the international benchmark, surged 7.5%, or $6.15, to $88.13 a barrel, while WTI crude climbed $8, or 6.3%, to $85.53 a barrel. The renewed hostilities in the Middle East reignited fears of supply disruptions after several days of relative calm.
In the domestic market, the near-month MCX gold futures contract rebounded ₹1,500 per 10 grams to an intraday high of ₹1,42,097, recovering all of Tuesday's loss of ₹1440. Meanwhile, MCX silver futures rebounded ₹4,600 per kg from the day's low to trade around ₹2,19,000 per kg.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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