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Informist, Thursday, Sept. 25, 2025

 

--MCX Dec silver contract hits new record high of INR 137,530 per kg

 

MUMBAI – Silver futures on the Multi Commodity Exchange of India rose to fresh record highs Thursday, tracking a rise in contracts on the COMEX, due to expectations of further interest rate cuts by the US Federal Reserve this year. On the COMEX, silver prices rose to 14-year highs, also supported by firm industrial demand.

 

At 1745 IST, the most active December silver contract on the MCX was 2.2% higher at INR 136,934 per kilogram, after touching an all-time high of INR 137,530 per kg. On the COMEX, the most active December gold contract was up 2.0% at $45.05 per ounce.

 

On Tuesday, Fed 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. The newly appointed Fed Governor Stephen Miran said Monday that the Fed is misreading how tight it has set monetary policy and will put the job market at risk without aggressive rate cuts, SMC Research said in a report. He said the appropriate Fed funds rate should be in the 2.0-2.5% range.

 

According to the CME FedWatch tool, 90% of the traders are pricing in a 25-basis-point rate cut in October, and 10% anticipate the rates to remain unchanged at 4.00-4.25%. Lower interest rates increase the appeal of non-interest-yielding precious metals.

 

Silver has outperformed even gold this year in percentage terms, surging 50%, Ole Hansen, head of commodity strategy at Saxo Bank said in a note. "Its dual identity as both a monetary and industrial metal has worked to its advantage. On one hand, silver benefits as a high-beta expression of gold's store-of-value appeal. On the other, structural demand growth from photovoltaics and electrification provides a more tangible narrative that helps anchor allocations," Hansen said.  End

 

US$1 = INR 88.66

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

 

Reported by Ashutosh Pati

Edited by Deepshikha Bhardwaj

 

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