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Informist, Wednesday, Sept. 3, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX continued to rise Wednesday with prices hitting fresh record highs, driven by expectations of an interest rate cut by the US Federal Reserve this month and rising safe-haven demand.

At 1824 IST, the most-active December GOLD contract on COMEX was 0.5% higher at $3,611.6 per ounce, after hitting a record high of $3,618.6 per ounce earlier in the day. The most-active October gold contract on the MCX was up 0.6% at INR 106,417 per 10 grams, after rising to an all-time high of INR 106,524 per 10 grams.

"Broader fiscal worries, coupled with diversification away from the US dollar and equity market pressures, continue to support bullion," Kotak Securities said in a report. "Analysts note that an aggressive tariff stance, political turmoil, and robust ETF (exchange-traded fund) inflows have transformed gold from a short-term hedge into a core strategic holding."

After a brief pause in July and August, gold has resumed its rally and been hitting new record highs every other day. On the domestic exchange, gold prices have risen for 11 consecutive sessions, rising over 7%, aided by weakness in the rupee against the dollar. On COMEX, gold has risen for six straight sessions, surpassing the $3,600 per ounce mark and surging nearly 6% in the same period.

Rising bets of a rate cut by the Fed later this month continue to push gold prices higher. Moreover, concerns over the central bank's independence after President Donald Trump attempted to fire Fed Governor Lisa Cook and she, in turn, moved court has raised gold's safe-haven demand. Traders now see 92% probability of a 25-basis-point rate cut by the Fed this month, higher than 89% a week ago, according to the CME FedWatch tool. Lower rates increase the appeal of the non-interest-yielding precious metal.

SILVER contracts also rose on the MCX and COMEX, tracking the gains in gold prices and on Fed rate-cut expectations. At 1828 IST, the most-active December silver contract on the MCX was 0.2% higher at INR 124,830 per kg. The same-month contract on COMEX was up 0.4% at $41.76 per ounce, trading close to 14-year highs.

Outlook for the rest of the session:

--MCX gold seen at INR 104,682–INR 107,748 per 10 grams

--COMEX gold seen at $3,570.0–$3,640.0 an ounce

--MCX silver seen at INR 121,778-INR 127,328 per kg

--COMEX silver seen at $41.20-$42.40 an ounce

End

US$1 = INR 88.07

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

Edited by Rajeev Pai

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