Indian gold and silver prices slid sharply on Thursday after the U.S. Federal Reserve raised key interest rates for the first time in three years, boosting the dollar and U.S. Treasury yields to long-term highs.

​On the Multi Commodity Exchange (MCX), gold futures dropped more than 1,300 rupees to an intraday low of 150,483 rupees per 10 grams before trimming losses slightly to trade near 151,150 rupees. MCX silver crashed nearly 2,000 rupees, hitting a session low of 230,221 rupees per kg.

​The selloff followed the U.S. Federal Open Market Committee’s (FOMC) unanimous 12-0 vote to hike the federal funds rate by 25 basis points to a range of 3.75% to 4.00%. The decision, led by Fed Chair Kevin Warsh, signals a tightening path to rein in sticky inflation.

​The hawkish policy outcome pushed the benchmark U.S. 10-year Treasury yield above 5% for the first time since 2023, while sending the U.S. dollar to multi-week highs.

​The Indian rupee breached the 96-per-dollar barrier for the first time since July 2026, trading around 96.10. While a weaker domestic currency typically buffers local gold prices against international declines, spot COMEX gold fell 1.5% to test critical support in the $4,300–$4,340 per ounce range, overwhelming local currency offsets.