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Informist, Wednesday, Oct. 15, 2025

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX rose to fresh record highs Wednesday, as rising tensions between China and the US fuelled safe-haven appeal of the precious metal. US Federal Reserve Chair Jerome Powell's latest comments increased expectations of further rate cuts this year, further supporting the rally in gold.

 

At 1550 IST, the most-active December GOLD contract on the MCX was 0.8% higher at INR 127,231 per 10 grams after touching a record high of INR 127,740 per 10 grams earlier in the day. The most-active December gold contract on COMEX was 1.2% higher at $4,215.2 per ounce, after hitting an all-time high of $4,235.8 per ounce.

 

Tensions between the US and China intensified after US President Donald Trump Tuesday threatened to terminate trade in cooking oil with Beijing. "I believe that China purposefully not buying our soybeans and causing difficulty for our soybean farmers, is an economically hostile act. We are considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution," Trump said on social media. China also placed restrictions on five US entities linked to a major South Korean shipbuilder and threatened further retaliatory measures.

 

Meanwhile, Powell, speaking at the NABE annual meeting, warned that a sharp slowdown in hiring is increasingly threatening the US economy. His comments about weakness in the labour market indicated that easing of interest rates was firmly on the table. "Gold continues its unprecedented surge, marking eight consecutive weeks of gains with no correction," Ajay Kedia, director of Kedia Advisory, said. "The rally is fuelled by global uncertainty, central bank buying, and rising expectations of US Federal Reserve rate cuts," he added.

 

SILVER contracts also surged on the MCX and the COMEX. At 1626 IST, the most-active December contract on the domestic exchange was 1.2% higher at INR 161,450 per kilograms. The same-month contract on COMEX was 1.3% higher at $51.27 per ounce. "A lack of liquidity continues to cause issues in the silver market. A jump in demand from India in recent weeks has drawn down the supply of available bars to trade in London, as well as strong inflows into silver-backed exchange traded funds," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

Outlook for the rest of the session:

--MCX Dec gold seen at INR 125,800–INR 128,400 per 10 grams

--COMEX Dec gold seen at $4,150.0-$4,250.0 an ounce

--MCX Dec silver seen at INR 160,000-INR 163,000 per kg

--COMEX Dec silver seen at $50.50-$51.80 an ounce

End

 

US$1 = INR 88.07

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

 

Edited by Subhojit Sarkar

 

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