Gold prices on Multi Commodity Exchange of India (MCX) opened lower on Wednesday amid escalating tensions between India and Pakistan, and ahead of US Federal Reserve’s monetary policy later today.

MCX gold rate opened lower at ₹96,900 per 10 grams as against its previous close of ₹97,491. At 9:05 AM, MCX gold price was trading lower by ₹841, or 0.86%, at ₹96,650 per 10 grams. Gold prices rallied over 3% in the previous session.

MCX silver price also opened lower and was trading down by ₹251, or 0.26% at ₹96,450 per kg.

Geopolitical tensions between India and Pakistan rose after the Indian Armed Forces conducted ‘Operation Sindoor’, carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). As many as nine terror sites were struck in the operation, which were the prime targets.

In the international markets, gold prices retreated as optimism over potential US-China trade talks weakened demand for safe-haven assets.

Spot gold prices were down 1.2% at $3,388.67 an ounce. The metal had risen nearly 3% in the previous session. US gold futures fell 0.7% to $3,397.70.

“We expect the precious metal to fall sharply in the day session as international prices have dropped early morning after the US officials hinted optimism to begin trade talks this week in Switzerland. Still, news of the talks comes just hours after the US President Donald Trump said he was in no hurry to sign trade deals,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.

US Fed Policy Eyed

Meanwhile, investors await the US Federal Reserve’s monetary policy meeting and comments from Fed Chair Jerome Powell on inflation and interest rate cuts later in the day.

Trivedi expects the US Fed to keep interest rates unchanged at the conclusion of a two-day meeting on Wednesday. The central bank is expected to signal few immediate changes to rates, amid heightened uncertainty over the economy and Trump’s tariffs.

“Outlook for today would be bearish and MCX Gold July may decline towards ₹96,500 per 10 grams,” Trivedi said.

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