Fed Rate Cut: Gold Price Falls Further — Check Rates In Delhi, Chennai, Other Cities

Gold prices slipped further on Sept. 19 after the US Federal Reserve meeting. The commodity had hit a fresh record high of $3,707.57 on Wednesday ahead of the meet.

In India, the prices were at Rs 1,09,530 per 10 gm on Friday, according to the India Bullion Association. The price was Rs 1,10,330 the previous day.

Gold recently crossed the Rs 1,10,000 mark on Sept. 15, and the possible rate cut from the Fed had drove the rally. Market analysts are optimistic about the long-term prospects for gold following this decision.

According to Anuj Gupta, a market and commodities expert, the Fed’s action was largely anticipated is support a positive trend for the precious metal.

"As the labour market and inflation are still a cause of concern for the Fed, they want to keep an eye on the data. The trend of gold is looking positive for the longer term," Gupta stated. In the very near term, there might be some profit booking as the event passes off.

Amit Gupta, a senior research analyst at Kedia Advisory, cautions that the rate cut had already been priced into the market, leading to some profit-booking in gold and silver.

In New Delhi, the price stood at Rs 1,09,140 per 10 gm, and in Mumbai, it stood at Rs 1,09,330 on Friday.

In Bengaluru, the rate stood at Rs 1,09,410, while in Kolkata, it was Rs 1,09,180 per 10 gm. The price of the precious commodity was the highest in Chennai, trading at Rs 1,09,650 per 10 gm.

The spot gold price was trading at $3,647 an ounce, according to the World Gold Council. The Oct. 3 futures for the yellow metal were trading higher at Rs 1,09,030, according to the Multi Commodity Exchange.

The precious metal's price rose to Rs 1,27,070 per kilogram, according to the India Bullion Association. That is compared with Rs 1,26,770 per kg on Thursday.

Oct. 5 futures for silver were trading higher at Rs 1,27,136, according to the Multi Commodity Exchange.