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Informist, Monday, Sept. 1, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India rose to another record high Monday, taking cues from global prices, because of weakness in the rupee. Gold prices were boosted by hopes of a rate cut by the US Federal Reserve later this month and concern over the independence of the central bank.

 

At 1659 IST, the most-active October GOLD contract on the MCX was up 1% at INR 104,840 per 10 grams after touching an intraday peak of INR 105,937 per 10 grams. Similarly, the SILVER contract for December delivery rose to a fresh record high of INR 124,990 per kg. At 1700 IST, the most-active December silver contract was up 2% at INR 124,298 per kg on the MCX.

 

On COMEX, the most-active December gold contract was up 0.8% from the previous close at $3,543.0 per ounce after hitting a new lifetime high of $3,557.1 per ounce. The most-active December silver contract on COMEX rose to a 14-year high of $41.64 per ounce during the day and, at 1712 IST, was trading at $41.43 per ounce. Trading volume was thin as the US market was shut for the Labor Day holiday.

 

The rally in domestic gold prices has continued for the ninth consecutive session, supported by a weak rupee amid US tariff worries. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal in India is priced in rupees. Monday, the rupee ended steady at 88.1950 after falling to a record low of 88.3300 against the dollar earlier in the day. This also supported silver prices, pushing them to new all-time highs.

 

"Geopolitical tensions, trade war risks, and China's consistent buying added to safe-haven demand," Kedia Advisory said in a note. The market also expects a rate cut by the Fed at its meeting later this month, which also supported the rally. According to the CME's FedWatch tool, traders see nearly 90% probability of a 25-basis-point rate cut by the Fed, up from 84% last week. Lower interest rates increase the appeal of the non-interest-yielding precious metal.

 

"Over the next few months, we anticipate gold prices will remain elevated and only rise further if the US Fed lowers interest rates," BMI, a unit of Fitch Solutions, said in a report. "In the event that the US Fed holds interest rates steady, gold prices would likely suffer a setback down closer to $3,000/oz."

 

Outlook for the rest of the session:

--MCX gold seen at INR 103,200–INR 106,400 per 10 grams

--COMEX gold seen at $3,515.0–$3,575.0 an ounce

--MCX silver seen at INR 122,000-INR 126,000 per kg

--COMEX silver seen at $39.10-$42.20 an ounce 

 

End

 

US$1 = INR 88.19

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

 

Edited by Rajeev Pai

 

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