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Informist, Wednesday, Aug. 13, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange rose Wednesday, tracking a rise in contracts on the COMEX because of a weaker dollar. Market sentiment was also boosted after US inflation data reinforced hopes of an interest rate cut by the US Federal Open Market Committee at its September meeting.

At 1657 IST, the most-active December GOLD contract on the COMEX was 0.4% higher at $3,412.7 per ounce. The most-active October gold contract on the MCX was at INR 100,360 per 10 grams, up 0.2% from the previous close.

US consumer inflation data for July was in line with analysts' expectations. Consumer prices in the US increased 2.7% on year in July, while core CPI rose 3.1%. Consensus estimates from The Wall Street Journal had indicated inflation would rise to 2.8% on year in July. "The data, coupled with signs of a softening labour market, has strengthened the case for monetary easing," Kotak Securities said in a report. The CME's FedWatch tool now shows a 96% chance of a rate cut by the US FOMC in September, up from 94% a day ago. Lower interest rates make the non-interest-bearing precious metal more attractive to investors.

A weaker dollar also supported prices of the precious metal. At 1701 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.3% at 97.77. A weaker dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand.

"Gold also found some support amid policy uncertainty," Daniel Hynes, senior commodity strategist at ANZ Research said in a note. "Fox News reported that (US) President (Donald) Trump's pick to lead the Bureau of Labor Statistics suggested suspending the monthly jobs report prior to his nomination," Hynes said.

Market participants are now waiting for the US unemployment claims data due Thursday for further cues. SILVER contracts also rose, tracking gains in gold. At 1705 IST, the most-active September silver contract on the MCX was up 1.3% at INR 115,172 per kilogram. The same-month contract on COMEX was up 1.4% at $38.55 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 99,184–INR 101,836 per 10 grams

--COMEX gold seen at $3,380.0–$3,435.0 an ounce

--MCX silver seen at INR 112,950-INR 117,632 per kg

--COMEX silver seen at $37.64-$39.51 an ounce

End

US$1 = INR 87.44

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Nishant Maher

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