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Informist, Monday, Aug. 25, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India rose slightly on Monday because of a weak rupee against the dollar. On the COMEX, gold contracts traded in the red, after a sharp rise in the previous session, because of a firm dollar.

 

At 1621 IST, the most-active December GOLD contract on the COMEX was 0.2% lower at $3,410.4 per ounce. The most-active October gold contract on the MCX was 0.1% higher at INR 100,508 per 10 grams. "Today (Monday), COMEX gold prices have eased from higher levels amid a slight recovery in the dollar but remain above $3400/oz as markets await US jobless claims, Core PCE data, and speeches by several Fed officials," said Kaynat Chainwala, AVP commodity research at Kotak Securities, in an emailed-note.

 

On the MCX, gold prices were trading higher because of a fall in the rupee against the dollar. The rupee ended near a two-week low of 87.5800 on Monday, the lowest closing level since Aug. 12. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees.

 

Gold prices rose over 1% on Friday after US Federal Reserve Chair Jerome Powell signaled that the central bank might ease monetary policy next month. Powell hinted at a potential rate reduction at the US Federal Open Market Committee's September meeting. He acknowledged growing concerns about employment conditions and emphasised on persistent inflation risks. Powell maintained a balanced stance, and avoided any firm commitment on interest rate cuts.

 

"Gold rallied (in the previous session) as the prospect of interest rates was supported by dovish comments from Powell. The central banker said that with policy currently in restrictive territory, the shifting balance of risks may warrant adjusting the policy stance," Daniel Hynes, senior commodity strategist at ANZ Research said in a note. "The market jumped on the comments, with the precious metal rising nearly 1% to end the week up by a similar amount," Hynes added.

 

However, uncertainty around interest rate cuts beyond September weighed on market sentiment. The CME's FedWatch tool now shows an 85% chance of a rate cut by the US FOMC in September, up from 82% a week ago.

 

SILVER contracts fell on the MCX and the COMEX. At 1645 IST, the most-active September silver contract on the MCX was down 0.3% at INR 115,891 per kilogram. The same-month contract on COMEX was down 0.9% at $38.69 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 99,330–INR 101,610 per 10 grams

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

--MCX silver seen at INR 113,366-INR 118,552 per kg

--COMEX silver seen at $38.20-$39.10 an ounce

End

 

US$1 = INR 87.58

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

 

Edited by Vandana Hingorani

 

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