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Informist, Thursday, Sept. 4, 2025

By J. Navya Sruthi

MUMBAI – Tracking the trend on the COMEX, futures contracts of gold and silver fell on the Multi Commodity Exchange of India Thursday because of profit booking, analysts said. However, prices of both the precious metals are near their record highs hit earlier this week.

GOLD prices on MCX were in the red tracking those on COMEX as the dollar index strengthened slightly ahead of US unemployment claims data due later in the day. At 1617 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was at 98.203, up almost 0.1% from its previous close of 98.144. A stronger dollar makes dollar-denominated commodities such as gold expensive for those holding other currencies, thereby reducing demand for the metal.

Prices also fell as investors booked profits, analysts said. At 1618 IST, the most-active December gold contract on COMEX was 1% lower at $3,600.4 per ounce, after hitting a record high of $3,640.1 per ounce Wednesday. The most-active October gold contract on the MCX was down 0.8% at INR 106,361 per 10 grams, after rising to an all-time high of INR 107,226 per 10 grams.

However, the precious metal remains up nearly 4% on week on expectations of an interest rate cut by the US Federal Reserve in September, tariffs raising costs, and rising pessimism around market growth, Pepperstone's Ahmad Assiri was quoted by Dow Jones as saying. According to the CME FedWatch tool, traders see a 97.4% probability of a 25-basis-point rate cut by the US Fed in its September meeting, higher than 86.7% last week. Lower interest rates increase the appeal of the non-interest-yielding precious metal.

US job openings in July fell to 7.18 million from 7.36 million in June, boosting hopes of a rate cut by the US Fed, which is also likely to support prices. "A sharper-than-expected drop in US job openings signalled labour market weakness, bolstering expectations of a Fed rate cut in September," Kedia Advisory said in a note. "The Trump administration's appeal of a ruling against global tariffs raised the risk of prolonged trade disputes while concerns about US Fed's independence and mounting US debt kept gold supported," the brokerage firm added.

SILVER contracts also fell on the MCX and COMEX, tracking fall in gold prices and on profit booking. At 1620 IST, the most-active December silver contract on the MCX was 0.9% lower at INR 124,789 per kg. The same-month contract on COMEX was down 1% at $41.62 per ounce.

Market participants are now waiting for US non-farm payrolls data and unemployment rate due Friday. They are also eyeing the Federal Open Market Committee's Sept. 16-17 meeting for cues on rate cut for the rest of 2025.

Outlook for the rest of the session:

--MCX gold seen at INR 104,740–INR 107,200 per 10 grams

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

--MCX silver seen at INR 122,800-INR 126,600 per kg

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

End

US$1 = INR 88.14

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

Edited by Nishant Maher

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