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Informist, Thursday, Aug. 28, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold rose Thursday on the Multi Commodity Exchange of India, tracking a rise on the COMEX because of a weak dollar. Market sentiment was also lifted on rising safe-haven demand amid concern over the independence of the US Federal Reserve.

 

At 1714 IST, the most-active December GOLD contract on the COMEX was 0.5% higher at $3,464.5 per ounce. The most-active October gold contract on the MCX was 0.2% higher at INR 101,780 per 10 grams. Gold prices have risen 27.5% year-to-date as of Tuesday and have spent the past three months consolidating earlier strong gains, leading to sideways trading confined to a narrow range pivoting around $3,350 per ounce, said Ole Hansen, head of commodity strategy at Saxo Bank, in a note. "For that to change, a break above $3,450 (per ounce) is needed, while a break below $3,250 (per ounce) may signal an extended period of consolidation," Hansen added.

 

US President Donald Trump's attempt to fire US Federal Reserve Governor Lisa Cook has raised concern about the independence of the Fed. Cook's lawyer said she will file a lawsuit to prevent Trump from firing her. Trump said he may consider White House economist Stephen Miran for Cook's seat should it become vacant. "Whatever the legal outcome, the signal is clear: political pressure on the central bank is rising, and it may over time introduce an 'independence premium' into US assets—supportive for gold in particular—because investors hedge governance risk with real assets," Hansen said.

 

Meanwhile, rising bets of an interest rate cut by the US Federal Open Market Committee's in the September meeting also supported gold prices. Fed fund futures traders now show an 87% chance of a 25-basis-point rate cut by the US FOMC in September, up from 75% a week ago, according to the CME's FedWatch Tool.

 

SILVER contracts rose on the MCX and the COMEX, tracking gains in gold. At 1730 IST, the most-active December silver contract on the MCX was up 1% at INR 118,493 per kilogram. The same-month contract on COMEX was up 1.2% at $39.70 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 101,000–INR 102,400 per 10 grams

--COMEX gold seen at $3,430.0–$3,490.0 an ounce

--MCX silver seen at INR 115,000-INR 119,000 per kg

--COMEX silver seen at $39.30-$40.10 an ounce

End

 

US$1 = INR 87.62

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

 

Edited by Subhojit Sarkar

 

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