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Informist, Monday, Sept. 22, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold and silver surged to record highs on the Multi Commodity Exchange of India on Monday, tracking gains in COMEX contracts due to expectations of more interest rate cuts by the US Federal Reserve this year. On the COMEX, gold futures surged to a new record high and silver futures were at a 14-year high, supported by a weak dollar.

Gold contracts on both the exchanges had touched all-time highs early Monday and rose to fresh highs later in the day. At 1830 IST, the most-active October contract of GOLD on the MCX was 1.5% higher at INR 111,513 per 10 grams after touching a record high of INR 111,727 per 10 grams. The most-active December gold contract on the COMEX was 1.3% higher at $3,754.6 per ounce, after hitting a record high of $3,763.1 per ounce earlier in the day.

"The rally was driven by expectations of additional US Federal Reserve rate cuts after last week's widely anticipated 25 basis point reduction, the first since December," Kedia Advisory said in a note. The CME's Fedwatch tool shows 92% traders pricing in a 25-basis-point cut by the Fed in October.

SILVER contracts on MCX surpassed the INR 132,000 per kg mark and rose to a record high of INR 132,980 per kg earlier in the day. At 1834 IST, the most-active December contract on the domestic exchange was 2.0% higher at INR 132,361 per kg, and the same-month contract on the COMEX was at $43.80 per ounce, also up 2.0%.

"Strong fundamentals, including tight supply, supported the upward trend, while robust industrial demand from the solar, electric vehicle, and electronics sectors added further momentum to silver prices," the brokerage said. Market participants are now awaiting speeches by several US Federal Open Market Committee officials later in the day and Fed Chair Jerome Powell's key speech Tuesday to gauge the central bank's monetary policy outlook.

At 1834 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.3% at 97.39. A weak dollar makes dollar-denominated commodities such as gold and silver cheaper for those holding other currencies, thereby aiding demand.

Outlook for the rest of the session:

--MCX gold seen at INR 110,800–INR 112,200 per 10 grams

--COMEX gold seen at $3,720.0–$3,780.0 an ounce

--MCX silver seen at INR 130,600-INR 134,000 per kg

--COMEX silver seen at $43.30-$44.25 an ounce

End

US$1 = INR 88.31

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

Edited by Avishek Dutta

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