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Informist, Thursday, Aug. 14, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India were steady on Thursday, despite negative cues from the COMEX, because of a fall in the rupee against the dollar. On the COMEX, gold prices edged lower because of a firm dollar and lower safe-haven demand following an extension of the US-China trade truce for another 90 days and the US-Russia summit on Friday.

 

At 1829 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 steady at INR 100,186 per 10 grams.

 

On the MCX, gold prices recouped the day's losses and were steady because of a fall in the rupee against the dollar. After falling to a low of 87.6750 a dollar during the day, the rupee ended at 87.5500 a dollar Thursday. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees.

 

However, losses in gold on COMEX were limited due to expectations of a rate cut by the US Federal Open Market Committee at its September meeting. 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 CME's FedWatch tool now shows a 95% chance of a rate cut by the US FOMC in September. Lower interest rates make the non-interest-bearing precious metal more attractive to investors.

 

"(US) Treasury Secretary Bessent urged the central bank to lower borrowing costs, saying the Fed's benchmark rate should be 150-175bp lower than its current level," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note. "He explicitly called for a half-point cut starting next month. This follows pressure from Trump, who has been warning rates are too high ever since he returned to office. Bessent's comments boosted speculation that the Fed will cut rates in September, with money market full pricing in a 25 bps cut," Hynes added. 

 

SILVER contracts fell on the MCX and the COMEX. At 1841 IST, the most-active September silver contract on the MCX was 0.5% lower at INR 114,450 per kg. The same-month contract on COMEX was down 0.9% at $38.27 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 99,800–INR 100,600 per 10 grams

--COMEX gold seen at $3,370.0–$3,420.0 an ounce

--MCX silver seen at INR 113,400-INR 115,400 per kg

--COMEX silver seen at $37.80-$38.55 an ounce

 

End

 

US$1 = INR 87.55

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

 

Edited by Avishek Dutta

 

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