Silver and gold prices fell on Thursday, September 18, 2025, as investors sold some of their holdings to lock in profits. This came after the US Federal Reserve cut interest rates by 25 basis points.
Even though lower rates usually support gold and silver, traders reacted to the Fed’s cautious approach and a stronger US dollar. The dollar’s rebound made precious metals slightly less attractive in the short term.
In India, 24-carat gold dropped Rs. 54 per gram to Rs. 11,117. The price of 22-carat gold fell by Rs. 50 to Rs. 10,190 per gram. Silver rates declined to Rs. 131 per gram, or Rs. 1,31,000 per kilogram. On the Multi Commodity Exchange (MCX), gold futures for October delivery fell by 0.94% to Rs. 1,08,790 per 10 grams. Silver futures dropped 0.86% to Rs. 1,25,897 per kilogram.
The decline was mainly due to “profit-taking,” where investors sold gold and silver after recent gains. Gold had reached record highs earlier this week, and silver touched a 14-year peak. Traders used the Fed rate cut as a chance to take some money off the table.
Internationally, silver traded near $41.87 per ounce, rising about 36% over the past year. Gold rates stood at around $3,667.89 per ounce. Despite the dip, demand for these metals continues amid concerns about inflation, the US economy, and geopolitical tensions.
Experts say the decline is short-term and part of normal market adjustment. The Fed’s careful “meeting-by-meeting” approach to future rate cuts makes investors reassess how much more the market might move. Even with these small corrections, gold and silver are expected to stay strong over the medium and long term.
In Mumbai, MCX gold opened lower at Rs. 1,09,250 per 10 grams. Silver December contracts also closed lower near Rs. 1,26,021 per kilogram. Analysts expect some choppy trading in the coming days, but safe-haven demand and economic uncertainties will likely support prices.
In essence, gold and silver took a temporary dip after Fed interest rate cuts, but the long-term view remains bullish. Dollar movements, global economic news, and inflation are all going to be under watch by investors for their next flight of move.
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