Spot gold prices open lower as US Fed holds rates
This story was originally published at 16:30 IST on 20 March 2026
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By Reshma Ravi
MUMBAI – Gold prices opened lower in the spot market Friday after the US Federal Reserve signalled that rate cuts will remain on hold until inflation shows clear signs of easing, traders said. Retail demand, which was seen weak, has picked up due to festival buying, but still much lower than times when prices have fallen earlier, traders added.
In Mumbai, the spot price of gold of 99.9% purity opened at INR 147,340 per 10 grams, down from Wednesday's closing price of INR 154,879 per 10 grams. The market was closed Thursday on account of Gudi Padwa festival. Dealers are offering a discount of INR 2,000 per 10 grams, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.
Spot gold prices fell after the US Fed kept interest rates unchanged Wednesday, traders said. The US Federal Open Market Committee left the federal funds target range unchanged at 3.50-3.75%, as was widely expected, and said it sees one rate cut in the rest of 2026. The committee said the implications of the US-Israel war on Iran for the US economy were uncertain. This is the second consecutive meeting in which the rate-setting panel has held interest rates steady at 3.50–3.75%.
Retail demand has picked up due to festival buying, said Nitin Kedia, national general secretary of All India Jewellers & Goldsmith Federation. However, it is still much lower than times when prices have fallen like this, Kedia added. Retail buying picked up due to Gudi Padwa and Ugadi festivals during which buying gold is considered auspicious. End
Edited by Ashish Shirke
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