US Fed Decision Tonight: What It Means for Your Gold and Silver Investments

Gold Rate Today: Prices Surge Over 1% – US Fed Meeting in Spotlight

Gold prices saw a sharp jump on Tuesday morning, May 6, as investor nerves over global economic uncertainty and US policy decisions sent safe-haven demand soaring. Domestic gold futures on the MCX rose over 1.3%, briefly touching ₹96,000 per 10 grams, a level not seen in two weeks.

Let’s break down the key reasons behind the price spike and what experts are predicting for gold and silver next.

 MCX Gold Crosses ₹96,000 – Here’s Why

At around 9:15 AM, the MCX Gold June 5 contract surged to ₹95,885/10g, gaining ₹1,241 or 1.31% in early trade. This momentum was driven by:

• Global uncertainty around US President Donald Trump’s tariff policies.

• Investor caution ahead of the US Federal Reserve’s policy outcome on May 7.

• International gold prices hitting a two-week high on similar cues.

According to Reuters, the global price rise is being fuelled by fears that economic growth in the US is slowing and inflation may be sticky — increasing the appeal of gold as a hedge.

 What’s Happening in the US Economy

Several recent US economic indicators are painting a mixed picture:

• GDP Shrinkage: The US economy contracted 0.3% in Q1 2025 (annualized).

• Manufacturing Slump: The ISM manufacturing PMI fell to 48.7, a five-month low, indicating contraction.

• Jobs Growth: However, April payrolls added 177,000 jobs, showing resilience.

• Inflation Signal: The Fed’s preferred gauge, PCE Price Index, remained flat in March after a 0.4% jump in February.

These contrasting signals make the upcoming US Federal Reserve policy decision a crucial moment for investors worldwide.

 Expert Insights: What to Watch for Next

 Jigar Trivedi, Reliance Securities

“The market is cautious ahead of the Fed’s decision. Investors are waiting for Chair Powell’s comments on inflation and economic growth.”

 Rahul Kalantri, Mehta Equities

Gold Price Key Levels (in ₹):

• Support: ₹94,350 – ₹93,980

• Resistance: ₹95,350 – ₹95,790

Silver Price Key Levels (in ₹):

• Support: ₹93,380 – ₹92,550

• Resistance: ₹95,350 – ₹95,950

International Gold Range (in USD):

• Support: $3,335 – $3,310

• Resistance: $3,382 – $3,398

Silver (USD):

• Support: $32.40 – $32.65

• Resistance: $33.30 – $33.55

These levels are important for short-term traders and investors tracking momentum in bullion markets.

 What About Silver

Silver prices also climbed alongside gold. Trivedi noted that the gold/silver ratio is around 101, indicating silver may have more upside in the current environment.

“MCX Silver July could rise to ₹95,100 – ₹95,300 per kg if international sentiment stays positive and the US Dollar doesn’t strengthen,” said Trivedi.

 Should You Buy Gold or Silver Now

If you’re wondering whether it’s a good time to invest, here’s a quick view:

• Gold remains a safe bet in uncertain times but may face short-term corrections.

• Silver could outperform gold if industrial demand picks up and the dollar remains weak.

• Short-term traders should watch for the Fed’s policy and comments tonight.

Experts suggest accumulating in dips if you’re a long-term investor, especially if gold stays above the ₹94,000 support zone.

 Key Points at a Glance