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Informist, Monday, Oct. 13, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX rose to new all-time highs Monday on firm safe-haven demand amid renewed trade tensions between China and the US, according to analysts. Expectations of more rate cuts by the US Federal Reserve this year also lifted market sentiment.

Friday, US President Donald Trump threatened an additional 100% tariff on China, ending months of truce in a trade war between the world's two largest economies, after Beijing expanded export controls on rare earths earlier in the week. However, Trump scaled back his threat during the weekend. China Sunday threatened to retaliate if Trump failed to back down on his threat and defended its curb on exports of rare earth elements and equipment as a response to US aggression.

At 1838 IST, the most active December GOLD contract on the MCX was 2.2% higher at INR 123,992 per 10 grams after touching a record high of INR 124,097 per 10 grams. The most active December gold contract on COMEX was 2.5% higher at $4,099.4 per ounce, after hitting an all-time high of $4,105.6 per ounce. "President Trump's threat to impose 100% tariffs on Chinese exports and restrict critical software sales from November 1 rattled markets, though he later adopted a softer tone, stating the US seeks cooperation, not conflict, with China," Kotak Securities said in a report.

Meanwhile, almost 98% of traders are pricing in a 25-basis-point rate cut by the Fed this month and 91% expect another 25 bps cut in December, according to the CME FedWatch tool. Gold prices typically rise during times of economic and geopolitical uncertainty and in low interest rate environments.

SILVER contracts also surged on the MCX and the COMEX. At 1840 IST, the most active December contract on the domestic exchange was 4.6% higher at INR 153,161 per kg. The same-month contract on COMEX was 5.5% higher at $49.85 per ounce. "There are suggestions that a lack of readily available silver in London is driving prices up, largely due to fears of potential US tariffs that have triggered a rush to ship silver across the Atlantic," ING analysts had said in a report.

Outlook for the rest of the session:

--MCX Dec gold seen at INR 123,000–INR 125,000 per 10 grams

--COMEX Dec gold seen at $4,050.0-$4,130.0 an ounce

--MCX Dec silver seen at INR 151,500-INR 154,500 per kg

--COMEX Dec silver seen at $49.20-$50.60 an ounce

End

US$1 = INR 88.68

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

Edited by Deepshikha Bhardwaj

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