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Informist, Thursday, Sept. 11, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India Thursday, tracking a fall in contracts on the COMEX because of a rise in the dollar index. Market participants are waiting for the US inflation data, due later in the day, to gauge the quantum of interest rate cuts by the US Federal Reserve this year.

 

At 1450 IST, the most-active December GOLD contract on the COMEX was 0.6% lower at $3,659.8 per ounce. The most-active October gold contract on the MCX was down 0.3% at INR 108,631 per 10 grams.

 

However, the fall in gold prices was limited due to expectations of rate cut by US Fed at its meeting next week and rising safe-haven appeal of the precious metal amid heightened geopolitical tensions. US Producer Price Index for final demand fell 0.1% in August, the Labor Department's Bureau of Labor Statistics said on Wednesday. The decline followed a 0.7% jump in July, which was also revised downwards. "Combined with earlier signs of a soft labor market, this data reinforced speculation about potential Fed easing, boosting demand for non-yielding gold," Kedia Advisory said in a note.

 

Traders have now fully priced in an at least 25-basis point rate cut by the Fed in September, with 8% of Fed fund futures pointing to a 50-bps cut, according to the CME Group's FedWatch tool. Disappointing recent economic data from the US and Fed Chair Jerome Powell's comments at the Jackson Hole symposium last month have raised expectations of a rate cut in September, triggering the rally in gold, which has hit record highs almost every other day.

 

SILVER contracts fell on the MCX and COMEX, tracking the fall in gold prices. At 1503 IST, the most-active December silver contract on the MCX was 0.1% lower at INR 125,119 per kg. The same-month contract on COMEX was down 0.4% at $41.41 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 107,600–INR 109,600 per 10 grams

--COMEX gold seen at $3,620.0–$3,680.0 an ounce

--MCX silver seen at INR 123,500-INR 126,200 per kg

--COMEX silver seen at $41.00-$42.00 an ounce

End

 

US$1 = INR 88.43

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

 

Edited by Ashish Shirke

 

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