Mumbai: Gold prices edged lower on Thursday after the United States Federal Reserve cut interest rates in a divided vote, leaving investors uncertain about the central bank’s future policy path. The lack of a clear signal on how many more rate cuts may follow led traders to take a cautious position, pushing gold slightly down in early trade.
Silver moved in the opposite direction and continued its strong rally. It touched a fresh record high in global markets as demand from industry remained solid and supplies stayed tight. Analysts also noted that silver has gained additional support after being added to the United States critical minerals list, which has boosted long term confidence in the metal.
Reports from Asian markets showed mixed reactions after the rate decision. While some investors expected bullion to strengthen further, others booked profits after the recent surge in gold prices. In India, domestic prices stayed elevated, reflecting global trends and steady consumer demand.
Market watchers said movements in precious metals may continue to be volatile in the coming days. Investors are now waiting for key economic data from the United States, including fresh inflation and job market numbers, to understand whether the Federal Reserve will adopt a more aggressive or cautious approach to rate cuts in the months ahead.
Despite the softer start for gold, analysts believe long term support remains intact, while silver’s strong momentum could continue if demand holds and supply remains tight.