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Informist, Wednesday, Sept. 24, 2025

By Reshma Ravi

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India Wednesday, tracking the losses in COMEX due to a strong dollar. Gold prices also fell due to profit booking after prices hit a fresh record high in the previous session, analysts said. However, the losses were limited due to growing expectations of further rate cuts by the US Federal Reserve and increasing safe-haven demand on account of geopolitical concerns.

At 1837 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.6% at 97.82. A strong dollar makes commodities priced in the currency, such as gold, less appealing for holders of other currencies, denting their demand.

At 1839 IST, the most-active October GOLD contract on the MCX was down 0.3% at INR 113,544 per 10 grams. The most-active December GOLD contract on the COMEX was down 0.4% at $3,801.9 per ounce. Gold prices surged to a record high of $3,824.6 per ounce in the previous session on expectations of further interest rate cuts by the US Federal Reserve this year. Dovish comments by the newly appointed Fed Governor Stephen Miran and strong flows into gold exchange-traded funds also lifted market sentiment.

On Tuesday, Federal Reserve Chair Jerome Powell struck a cautious tone on further easing. Powell said that the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in the coming meetings, even as his colleagues staked out arguments on both sides of the policy divide.

According to the CME FedWatch tool, 94% of the traders are pricing in a 25-basis-point rate cut in October, and 6% anticipate the rates to remain unchanged at 4.00-4.25%. Lower interest rates increase the appeal of non-interest-yielding precious metals.

SILVER contracts were steady on the MCX while they fell on COMEX. At 1843 IST, the most-active December silver contract on the MCX was steady at INR 135,022 per kilogram. The same-month contract on COMEX was down 0.5% at $44.38 per ounce.

Market participants await the US unemployment claims data, due Thursday, and the personal consumption expenditures data, due Friday, for further cues on potential rate cuts by the Federal Reserve later this year.

Outlook for the rest of the session:

--MCX gold seen at INR 111,752–INR 115,222 per 10 grams

--COMEX gold seen at $3,736.9–$3,818.4 an ounce

--MCX silver seen at INR 131,561-INR 138,150 per kg

--COMEX silver seen at $43.18-$44.86 an ounce

End

US$1 = INR 88.69

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

Edited by Saji George Titus

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