Gold, silver drop up to 2% on MCX ahead of Dhanteras as Fed signals higher rates
Synopsis
Gold and silver have taken their sharpest single-session hit in recent weeks on the MCX — and the timing could not be more pointed. With Dhanteras days away, a hawkish Fed pause, two dissenting votes for a rate hike, and gold approaching a make-or-break support at Rs 1.40 lakh, buyers and investors are caught in a delicate window between near-term relief and further downside risk.
Key Takeaways
Gold futures (December) fell up to 0.63% to an intraday low of Rs 1,41,685 per 10 grams on the MCX on 30 October .
Silver tumbled up to 2.26% or Rs 4,282 , hitting an intraday low of Rs 1,85,171 per kg .
The US Federal Reserve kept rates at 3.75–4% in a 10-2 vote ; Fed Chair Kevin Warsh flagged persistently high inflation.
Analysts see critical gold support at Rs 1.40–1.41 lakh per 10g ; a break lower could target Rs 1.37–1.38 lakh .
The sell-off comes just before Dhanteras and Diwali , potentially offering relief to festive buyers.
Geopolitical risks in West Asia and crude oil price volatility remain additional wildcards for the market.
Gold and silver prices declined sharply on the Multi Commodity Exchange (MCX) on Friday, 30 October, sliding up to 2 per cent as hawkish signals from the US Federal Reserve stoked expectations that borrowing costs could remain elevated for longer. The correction arrives just days before Dhanteras and Diwali, offering some respite to festive buyers bracing for high prices.
How Far Prices Fell
Gold futures (December contract) on the MCX dropped as much as 0.63 per cent, or Rs 911, to hit an intraday low of Rs 1,41,685 per 10 grams. By around 12:20 pm IST, gold was trading at Rs 1,41,800, down Rs 796 or 0.56 per cent from its previous close.
Silver bore heavier losses, tumbling Rs 4,282 or 2.26 per cent to an intraday low of Rs 1,85,171 per kg. The white metal was last seen at Rs 1,85,500, a decline of roughly 2 per cent or Rs 3,953. In international markets, spot gold slipped 0.7 per cent to approximately $3,991 per ounce, while spot silver fell 1.6 per cent to $51.27 per ounce.
The Fed Factor Behind the Sell-Off
Market experts attributed the pressure to a hawkish stance by the US Federal Reserve, which held its benchmark interest rate unchanged at 3.75–4 per cent in a 10-2 vote. Fed Chair Kevin Warsh indicated that inflation remains stubbornly high, and two policymakers reportedly dissented in favour of an outright rate hike, signalling that the rate-tightening cycle may not be over.
A series of strong US economic data releases since the Fed meeting has further reinforced the 'higher for longer' narrative. Higher interest rates raise the opportunity cost of holding non-yielding assets like gold and silver, making them less attractive relative to bonds and dollar-denominated instruments. This is the latest in a run of risk-off sessions for precious metals tied to US policy signals.
Key Support Levels to Watch
Commodity analysts noted that gold is approaching a critical support band between Rs 1.40 lakh and Rs 1.41 lakh per 10 grams. 'A decisive break below this range could drag prices towards Rs 1.37–1.38 lakh,' experts said. For silver, the next meaningful support is seen in the Rs 1.83–1.85 lakh per kg zone; the metal has now corrected significantly from its historic peak, analysts added.
Geopolitical Risks and the Crude Oil Wildcard
Beyond the Fed, markets are also watching crude oil prices, which remain sensitive to escalating geopolitical tensions in West Asia, including developments involving Iran and concerns over potential supply disruptions. Crude price swings can influence inflation expectations, which in turn feed back into Fed policy bets and, by extension, precious metal valuations.
Silver Lining for Festive Buyers
Despite near-term headwinds, analysts suggest that current price levels could be attractive for long-term investors and consumers looking to purchase jewellery or coins ahead of Dhanteras. However, they cautioned that the direction will depend on upcoming Fed commentary, the US dollar index, Treasury yields, and crude oil trends. Any further dollar strengthening or a hotter-than-expected US inflation print could extend the slide.
Point of View
Which historically props up domestic demand even when global cues are bearish. The more significant signal, however, is the Fed's internal split — two dissenters voting for a hike suggests the rate cycle is less conclusively paused than markets had assumed. Gold at $3,991 per ounce is still historically elevated, meaning any further dollar strength or hot US inflation print could accelerate the slide well past the Rs 1.40 lakh support. The festive-buying window may provide a short-term floor domestically, but that is no substitute for a genuine shift in the global rate narrative.
NationPress
30 Oct 2026
Frequently Asked Questions
Why did gold and silver prices fall on 30 October 2026?
Gold and silver fell on 30 October because hawkish signals from the US Federal Reserve — which held rates at 3.75–4% with two policymakers dissenting in favour of a hike — fuelled expectations of higher borrowing costs for longer. Higher rates increase the opportunity cost of holding non-yielding assets like precious metals, triggering a sell-off.
How much did gold fall on MCX today?
Gold futures (December contract) on the MCX dropped up to 0.63%, or Rs 911, to an intraday low of Rs 1,41,685 per 10 grams. By midday the yellow metal was trading at Rs 1,41,800, down Rs 796 from its previous close.
What are the key support levels for gold and silver right now?
Commodity analysts place gold's critical support between Rs 1.40 lakh and Rs 1.41 lakh per 10 grams; a break below that could send prices towards Rs 1.37–1.38 lakh. For silver, the next support zone is Rs 1.83–1.85 lakh per kg.
Should festive buyers purchase gold and silver at current prices?
Analysts suggest current levels may offer a buying opportunity for long-term investors and festive shoppers ahead of Dhanteras and Diwali. However, they caution that near-term direction hinges on Fed policy signals, the US dollar index, Treasury yields, and crude oil prices — all of which remain uncertain.
What did the US Federal Reserve decide on interest rates?
The Federal Reserve kept its benchmark rate unchanged at 3.75–4% in a 10-2 vote. Fed Chair Kevin Warsh signalled that inflation remains stubbornly high, and two policymakers reportedly voted for an outright hike, reinforcing the 'higher for longer' rate outlook that has weighed on precious metals.
