Gold Prices Fall ₹13,000 from Peak as Investors Eye US Fed Meet

The shine in gold prices dimmed this week as traders braced for the outcome of the US Federal Reserve meeting. On Tuesday, MCX gold prices fell over ₹13,000 from their record highs, slipping below the ₹1,20,000 per gram mark.

After months of near-uninterrupted gains, the yellow metal is seeing a cool-off — driven by shifting global cues, risk-on sentiment, and some profit-taking at higher levels.

Market Mood Turns Cautious Ahead of Fed Decision

For the last ten months, gold has been the investor favorite, glittering on the back of safe-haven demand and uncertainty in global markets. But now, the sentiment seems to be changing.

Optimism over a potential US–China trade breakthrough has pulled investors back toward equities, while rising bond yields have made non-yielding assets like gold slightly less attractive in the short term.

The recent dip in gold prices reflects this shift — traders are booking profits and adjusting positions ahead of the crucial US Fed meet, where policymakers are expected to cut rates by 25 basis points.

Lower rates usually support gold prices since they reduce the opportunity cost of holding non-interest-bearing assets like bullion. But for now, the market is in “wait and watch” mode.

Key Factors Behind the Gold Price Fall

Here’s what’s driving the short-term pressure on gold:

• Profit booking after gold’s strong rally in the past ten months.
• Improved risk sentiment due to easing trade tensions.
• Rising bond yields diverting flows away from bullion.
• Cautious trading ahead of the US Fed’s interest rate verdict.

Despite these near-term headwinds, the broader story remains interesting — gold continues to hold a significant place in the global commodity market, reflecting its plays a dual purpose — serving as both a valuable investment and a reliable hedge against uncertainty.

MCX Gold Price Today: From Record Highs to Correction Zone

The correction in MCX gold comes after a strong multi-month rally. Prices had surged to record levels earlier this year, supported by steady central bank buying and lingering concerns over fiscal deficits and currency volatility.

Even after the fall, gold remains one of the best-performing assets of the year, still up nearly 50% from earlier lows — highlighting how resilient the metal has been through shifting global trends.

What the Market Is Watching Next

With the US Fed meet outcome just around the corner, the next move in gold rates will likely depend on the Fed’s tone and its outlook for future policy.

A dovish stance or hints at further easing could bring back some shine to bullion, while a neutral or hawkish commentary may keep prices under pressure in the short run.

For now, investors across the commodity market are focused on one question — how deep could this correction go, and what tone will the Fed strike this time?

Summary

The recent ₹13,000 fall in MCX gold prices reflects a mix of global optimism, higher yields, and pre-Fed caution.

Yet, despite short-term volatility, gold continues to command relevance in uncertain markets, balancing its position between risk and safety.

As the US Fed meet draws closer, all eyes are on whether this dip will turn into a pause — or the start of a deeper correction in the world’s most trusted safe-haven asset.