Gold rises above $4,070 an ounce, silver gains nearly 1% after US Fed holds rates

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Gold rises above $4,070 an ounce, silver gains nearly 1% after US Fed holds rates
- Published OnOct 29, 2026 | 07:14 IST
- Last Updated OnOct 29, 2026 | 07:14 IST
Gold and silver prices rose in early global trade after the US Federal Reserve kept interest rates unchanged, while investors assessed inflation and West Asia developments.
Gold and silver prices rose in early global trade on Thursday, October 29, after the US Federal Reserve kept interest rates unchanged, while investors continued to assess the outlook for inflation and geopolitical developments in the West Asia.
On the COMEX, gold futures were trading at $4,073.70 per ounce, up 0.55%, while silver futures rose 0.99% to $54.195 per ounce, according to the latest available quotes.
The gains come after both precious metals faced pressure on Wednesday (October 28) ahead of the Fed's policy decision. In the domestic market, gold prices in New Delhi had risen by ₹700 to ₹1.46 lakh per 10 grams on Wednesday (October 28), while silver remained unchanged at ₹1.98 lakh per kilogram, according to traders quoted by PTI.
Why are gold and silver prices moving?
Fed decision keeps focus on inflation and interest rates
The US Federal Reserve kept its benchmark interest rate unchanged at around 3.9% on Wednesday (October 28), citing elevated inflation and the need for more information before deciding on its next policy move.
The decision leaves the outlook for interest rates uncertain. Market participants have been pricing in the possibility of another rate hike before the end of the year, amid persistent inflationary pressures.
Higher interest rates generally weigh on gold and silver because they do not offer interest income, making interest-bearing assets relatively more attractive. Conversely, expectations of lower rates can support demand for precious metals.
However, the Fed's latest decision does not, by itself, establish a clear direction for bullion prices, particularly with inflation remaining above the central bank's 2% target.
West Asia tensions keep energy prices and inflation in focus
Developments in the West Asia remain another factor for precious metals. Yemen's Houthi group reportedly stepped up attacks amid the wider regional conflict, raising concerns about potential disruptions to energy supplies.
US crude oil futures fell around 0.9% to $101.86 per barrel on Thursday (October 29), after gaining 3% in the previous session, as traders weighed the risk of further supply disruptions.
Higher crude oil prices can add to inflationary pressures and complicate the outlook for monetary policy. This creates competing influences for gold: geopolitical uncertainty can support demand for the metal as a safe-haven asset, while higher energy-driven inflation could keep interest rates elevated for longer.
Rupee depreciation supports domestic gold prices
In India, currency movements can influence bullion prices even when international prices are under pressure.
The rupee depreciated 21 paise to close at 95.28 against the US dollar on Wednesday (October 28). A weaker rupee makes dollar-denominated gold imports more expensive, potentially supporting domestic prices.
What should investors watch next?
The direction of gold and silver prices will depend on how markets interpret the Fed's next policy steps, inflation data and developments in the West Asia. Movements in crude oil prices and the rupee will also be important for domestic bullion rates.
Investors will need to distinguish between short-term price rebounds and a sustained change in the trend. A prolonged period of elevated interest rates could weigh on precious metals, while renewed geopolitical uncertainty or expectations of monetary easing could provide support.
For Indian buyers, domestic prices will additionally depend on currency movements and local market conditions. A rise in international bullion prices does not necessarily translate into an identical percentage increase in Indian retail prices.
-With agencies inputs
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.

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