For the first time after the year 2023, the US Federal Reserve has taken a big step in interest rates and increased them by 25 basis points. With this, the interest rates have been directly increased from 3.75 percent to the target limit of 4 percent. This decision has been taken in the important meeting of FOMC held on 15-16 September amid persistently high inflation figures in the country. Let us tell you that recently in the month of August, America's consumer inflation rate was recorded at 3.4 percent on an annual basis, which is still much above the Federal Reserve's target of 2 percent.
Gold and silver boomed in the global market
As soon as this big decision of the Federal Reserve came, its impact was immediately visible in the international markets. According to SEBI registered market and commodity expert Anuj Gupta, this decision of the Federal Reserve has been almost in accordance with the expectations of the market, where the FOMC has increased the interest rates by 0.25 percent to 4 percent. However, this step is currently proving to be quite stressful for the global market, which has had its worst impact on the prices of gold and silver. As soon as the Fed's decision came out, both gold and silver fell face down in the international market. Gold suddenly fell sharply by $80 and was seen trading at $4288 an ounce, while silver also slipped straight to the level of $63 an ounce.
Expert Anuj Gupta says that this increase in interest rates has provided tremendous support to the US dollar and bond yields, due to which there has been severe selling pressure on precious metals like gold and silver, which are priced in dollars. Immediately after this decision, a strong recovery was recorded in the dollar index and it reached around 111.97. On the other hand, the US 10-year bond yield remained around 4.05 percent and the 30-year bond yield remained around 4.11 percent. This rise in US treasury yields has always been considered a big challenge for gold.
What will be the future trend and impact on Indian markets?
Experts on precious metals say that now the further movement of gold and silver will completely depend on some important technical levels. According to Anuj Gupta, in the international market the level of $4200 is considered to be a very big and strong support for gold, whereas for silver the support of $62 is going to be the most important. Experts believe that after these sharp results of the Fed, the prices of gold and silver may face a big fall in the Indian stock market and the domestic bullion market today.
After this increase in interest rates, now the eyes of investors all over the world are focused on the upcoming policies of the Federal Reserve. Not only this, the Fed has indicated the possibility of increasing rates further in the year 2026. In such a situation, in the coming trading sessions, only the movement of the US dollar, bond yield figures and new inflation rate figures will decide in which direction gold and silver will move in the global and Indian markets.