More Stories

Informist, Thursday, Sept. 18, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX fell Thursday as investors booked profits after it hit a fresh record high in the previous session, analysts said. Market sentiment was also hurt after investors interpreted the US Federal Reserve's policy outlook as less dovish than previously expected.

 

The US Federal Open Market committee cut the interest rate by 25 basis points to 4.00-4.25%, which was in line with market expectations. This is the first time in 2025 that the committee had reduced interest rates. In its economic projections, the panel indicated chances of two additional 25-bps rate cuts this year. 

 

At 1643 IST, the most-active October GOLD contract on the MCX was down 0.2% at INR 109,624 per 10 grams. The most-active December GOLD contract on the COMEX was down 0.4% at $3,701.9 per ounce. Gold prices surged to a record high of $3,744.0 per ounce in the previous session immediately after Fed lowered rates. However, yellow mental gave up the gains and fell due to Fed Chair Jerome Powell's remarks that were perceived as less dovish than anticipated. 

While the decisions and projections were along traders' expectations, the tone of the panel and Powell is what led traders to pull back from aggressive rate cut bets, leading to strengthening of the dollar and US Treasury yields overnight, putting further pressure on gold prices. Powell termed the cut on Wednesday as "risk management", emphasising it was not primarily aimed at addressing economic weakness. Members said that policy would be decided "meeting by meeting" and warned "there's no risk-free path" ahead.

 

"Gold had been driven by the prospect of aggressive cuts in recent weeks. However, Powell's focus on stronger US GDP forecasts and still elevated inflation projections seemed to create doubt in investors' minds. The precious metal has been vulnerable to sharp corrections," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

SILVER contracts rose on MCX and were steady on COMEX. At 1643 IST, the most-active December silver contract on the MCX was up 0.2% at INR 127,185 per kilogram. The same-month contract on COMEX was steady at $42.13 per ounce.  

 

Outlook for the rest of the session:

--MCX gold seen at INR 108,600–INR 110,000 per 10 grams

--COMEX gold seen at $3,654.0–$3,716.0 an ounce

--MCX silver seen at INR 124,290-INR 129,010 per kg

--COMEX silver seen at $40.74-$43.03 an ounce

 

End 

 

US$1 = INR 88.13

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

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.