Gold and silver prices witnessed a modest rebound on Wednesday, October 29, 2025, as investors turned cautious ahead of the US Federal Reserve’s upcoming interest rate decision. The movement in precious metals was also influenced by easing US Treasury yields and heightened geopolitical tensions in the Middle East.
On the Multi Commodity Exchange (MCX), gold December futures opened nearly flat at ₹1,19,647 per 10 grams but soon gained ₹401 (0.34%) to trade at ₹1,20,047 per 10 grams by 9:08 AM. Silver December futures also saw an uptick, rising ₹989 (0.69%) to ₹1,45,331 per kilogram from the previous close of ₹1,44,342.
In international markets, spot gold rose 0.2% to $3,957.42 per ounce, recovering from its lowest level since October 7. However, US gold futures for December delivery slipped slightly by 0.3% to $3,971.20 per ounce.
The rebound follows a sharp decline earlier in the week, when both metals hit their lowest levels in nearly three weeks. Analysts attribute the recovery to short covering and investor positioning ahead of the Fed’s policy announcement, which is widely expected to include a quarter-point rate cut.
Despite the recent gains, market experts remain cautious. According to analysts at Anand Rathi Shares and Stock Brokers, gold and silver prices may continue to face downward pressure in the near term due to profit-booking and normalization in the silver market. However, any dovish signals from the Federal Reserve could provide fresh momentum for bullion prices.
The price of 24-karat gold in India stood at ₹12,562 per gram on October 25 and remained steady over the weekend, while 22-karat gold was priced at ₹11,515 per gram.
Investors are closely monitoring the Fed’s policy stance, as interest rate decisions significantly influence the appeal of non-yielding assets like gold and silver. A rate cut could weaken the dollar and boost demand for precious metals as a hedge against inflation and economic uncertainty.
