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Informist, Monday, Oct. 6, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver hit record highs on the Multi Commodity Exchange of India Monday, tracking gains in COMEX contracts on safe-haven demand amid growing concerns about the US government shutdown, analysts said. Prices were also supported by growing expectations of an additional US Federal Reserve rate cut in October.  

 

At 1621 IST, the most-active December contract of GOLD on the MCX was 1.6% higher at INR 119,949 per 10 grams after touching a record high of INR 120,075 per 10 grams. The most-active December gold contract on COMEX was 1.5% higher at $3,968.3 per ounce, after hitting a record high of $3,973.7 per ounce earlier in the day.

 

The US Senate Friday failed to advance competing plans to extend federal funding, effectively guaranteeing that the government shutdown will stretch into this week. The administration will start mass layoffs of federal workers if President Donald Trump decides negotiations with congressional Democrats to end a partial government shutdown are "absolutely going nowhere", Reuters said, quoting a senior White House official.

 

The shutdown has delayed most US economic data, including September's non-farm payrolls report, casting more uncertainty on the economic outlook. This has further increased expectations of a rate cut by the Fed at its October meeting. Fed Governor Stephen Miran pressed for an aggressive rate cut again Friday, citing the impact of the Trump administration's policies on the economy, SMC Global Securities said in a report. According to the CME FedWatch tool, 95% of traders are pricing in a 25-basis-point rate cut in October while 5% expect the rate to remain unchanged at 4.00-4.25%. Lower interest rates increase the appeal of the non-interest-yielding precious metals.

 

SILVER contracts hit a record high on MCX. At 1630 IST, the most-active December contract on the domestic exchange was 1.2% higher at INR 147,583 per kg after touching a record high of INR 147,977 per 10 grams. The same-month contract on COMEX was at $48.39 per ounce, up 0.9%. "We see a more bullish side for silver than gold due to industrial demand and concerns over the US government shutdown," Ajay Kedia, director of Kedia Advisory, said.

 

Outlook for the rest of the session:

--MCX Dec gold seen at INR 118,200–INR 121,000 per 10 grams

--COMEX Dec gold seen at $3,920-$4,000 an ounce

--MCX Dec silver seen at INR 146,000-INR 149,000 per kg

--COMEX Dec silver seen at $47.80-$48.90 an ounce

 

End

 

US$1 = INR 88.78

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

 

Edited by Rajeev Pai

 

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