Gold calm ahead of Fed meet outcome, silver weakens on muted demand

New Delhi: Gold prices remained steady at Rs 28,450 per 10 grams Wednesday ahead of the outcome of the ongoing Federal Reserve meet which is expected to tighten its policy sooner than later.

However, silver prices declined by Rs 100 to Rs 41,400 per kg today owing to slack demand from consuming industries at the domestic spot market.

Globally, gold rose 0.41 percent to USD 1,162.70 an ounce and silver by 1.13 percent to USD 17.07 an ounce in Singapore on a weaker dollar and as markets waited for the outcome of the US Federal Reserve`s policy meeting later in the day.

Higher US rates raise the opportunity cost of holding non-yielding bullion.

The outcome of the policy meeting will be announced at 1900 GMT, followed by Chair Janet Yellen`s news conference half an hour later.

In the national capital, silver ready drifted lower by Rs 100 to Rs 41,400 per kg and weekly-based delivery shed Rs 10 at Rs 41,480.

On the other hand, gold of 99.9 percent and 99.5 percent purity held steady at Rs 28,450 and Rs 28,300 per 10 grams, respectively. It had lost Rs 100 in yesterday's trade.

With PTI Inputs