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Informist, Tuesday, Aug. 26, 2025

By Afra Abubacker

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange rose slightly Tuesday, tracking the rise in COMEX gold contracts on the back of a weaker dollar. However, the upside in gold prices was limited after the contract hit a two-week high earlier Tuesday.

At 1459 IST, the most-active October GOLD contract on the MCX was 0.3% higher at INR 100,913 per 10 grams. The most-active December gold contract on COMEX was up 0.1% at $3,421.70 per ounce, after hitting a nearly two-week high of $3,434.70 per ounce earlier Tuesday.

Gold futures are trading sideways after paring earlier gains on increased safe-haven demand. "US President Donald Trump said he was removing Lisa Cook from the Fed (US Federal Reserve) board of governors, prompting a selloff in the US dollar and renewed demand for safe-haven assets like gold," Dow Jones quoted Pepperstone's Ahmad Assiri as saying in a note.

"Prices have since normalized, though the broader backdrop for gold remains supportive," he added. Growing expectations of a rate cut by the Fed also supported gold prices. Friday, Fed Chair Jerome Powell signalled that the central bank is likely to ease policy at its next meeting in September.

Currently, traders see an 84.3% probability of a 25-basis-point rate cut in September, according to the CME's FedWatch tool. Lower rates increase the appeal of the non-interest-yielding metal.

"The fundamental backdrop supporting the precious metal remains intact, both from the perspective of US monetary policy and ongoing global geopolitical risks," Dow Jones quoted an analyst as saying. For further cues, the market is waiting for the US initial jobless claims data due Thursday, and the US Personal Consumption Expenditures Price Index due Friday.

At 1459 IST, the most-active September SILVER contract on the MCX was down 0.6% at INR 116,210 per kg. The same-month contract on COMEX was down 0.3% at $38.64 per ounce.

Silver prices fell more Tuesday as traders took profits after the recent rally, Kedia Advisory said in a note. On Friday, the silver contract on COMEX had hit a nearly one-month high of $39.09 per ounce. 

However, losses were limited amid strong expectations of the Fed's monetary policy easing and strong solar cell exports from China that are seen supporting prices of the industrial metal, Kedia added. 

Outlook for the rest of the session:

--MCX gold seen at INR 99,700–INR 101,500 per 10 grams

--COMEX gold seen at $3,355.0–$3,445.0 an ounce

--MCX silver seen at INR 115,000-INR 117,600 per kg

--COMEX silver seen at $37.0-$40.10 an ounce

End

Edited by Nishant Maher

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