Fresh Record
Gold prices hit record highs as weak US jobs data raises Fed rate cut hopes
This story was originally published at 21:23 IST on 5 September 2025
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--MCX Sept silver contracts hits fresh record high of INR 124,350 per kg
--COMEX Dec gold contract hits fresh record high of $3,654.2 per ounce
--MCX Oct gold contract hits fresh record high of INR 107,785 per 10 grams
NEW DELHI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX continued to rise Friday with prices hitting fresh record highs, after weak US jobs data further raised expectation for a bullion-supportive Federal Reserve rate cut.
At 2037 IST, the most-active December Gold contract on COMEX was 1% higher at $3,644.5 per ounce, after hitting a fresh record high of $3,654.2 per ounce. The most-active October gold contract on the MCX was also up 1% at INR 107,501 per 10 grams, after rising to an all-time high of INR 107,785 per 10 grams. December gold contract on the MCX also reached record high, up 1% at INR 108,488 per 10 grams.
US data release which showed US job growth weakened sharply in August while the unemployment rate increased to 4.3%, confirming that labour market conditions were softening, supporting rate cut hopes. The US added 22,000 jobs in August, below the 75,000 gain economists had expected, figures from the Labor Department showed. Traders now see an 84% chance of a 25-basis-point rate cut and a 16% chance of a 50-basis-point cut in September, according to the CME FedWatch tool. Lower rates increase the appeal of the non-interest-yielding precious metal. The next Federal Reserve meeting is on the schedule in two weeks.
The rally in gold prices was also fuelled by concerns over the independence of the Fed and heightened geopolitical risks which are supporting safe-haven demand of the precious metal.
The rally in domestic gold prices has continued for several sessions, 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. On Friday, the rupee ended at a record closing low of 88.2650 after falling to a record low of 88.3650 against the dollar earlier in the day. This also supported silver prices, pushing them to new all-time highs.
Silver contracts also touched record highs on the MCX, tracking the gains in gold prices and on Fed rate-cut expectations. The September silver contract on the MCX rose to an all-time high of INR 124,350 per kg, and at 2051 IST, the September silver contract on the MCX was 0.7% higher at INR 123,330 per kg. End
US$1 = INR 88.26
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Pallavi Singhal
Edited by Akul Nishant Akhoury
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