More Stories

Informist, Thursday, Oct. 16, 2025

 

By Afra Abubacker

 

NEW DELHI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX rose to fresh record highs Thursday as investors bought the safe-haven asset amid rising tensions between the US and China and the ongoing government shutdown in the US. Expectations of more rate cuts by the US Federal Reserve also supported prices.

 

At 1808 IST, the most-active December GOLD contract on the MCX was 1% higher at INR 128,066 per 10 grams after touching a record high of INR 128,457 per 10 grams earlier in the day. The most-active December gold contract on COMEX was 1.4% higher at $4,264.2 per ounce, after hitting an all-time high of $4,266.8 per ounce.

 

US President Donald Trump said that Washington was now locked in a trade war with Beijing, after China announced new restrictions on rare earth exports. US Trade Representative Jamieson Greer described China's new export restrictions as a "global supply-chain power grab", and the US and its allies would not accept the restrictions. Trump is expected to meet Chinese President Xi Jinping in South Korea later this month. 

 

Meanwhile, Fed Chair Jerome Powell signalled the central bank is on track to cut rates later this month. According to CME's FedWatch tool, 97.8% of traders are pricing in a 25-basis-point rate cut this month.

 

"The precious metal has clocked over 35 new record highs this year, as investors embrace tangible assets amid global uncertainty. Silver too has mirrored gold's brilliance, soaring over 60% YTD (year to date) across exchanges," Motilal Oswal Financial Services said. "What began as a cautious start to the year has turned into a full-fledged super cycle, driven by capital rotation from bonds and riskier assets into safe havens," it said. 

 

Political uncertainty in Japan following the election of Sanae Takaichi has added to global safe-haven demand. Takaichi's election has sparked concern about the prospect of deeper deficit spending in Japan. Gold prices also rose on continued strong central bank buying.

 

SILVER contracts also surged on the MCX and the COMEX. At 1808 IST, the most-active December contract on the domestic exchange was 1% higher at INR 164,105 per kilogram, after hitting a fresh record high of INR 164,660 per kg. The same-month contract on COMEX was 1.4% higher at $52.15 per ounce, after hitting a new record high of $52.89 per ounce. 

 

"The gold-silver ratio, which peaked near 110 earlier this year, has now narrowed to 81–82, returning to pre-pandemic levels. Global silver supply has failed to keep pace with demand for several years, leading to a structural market deficit, which is forecast to continue for a fifth consecutive year in 2025," Motilal Oswal said. 

 

Outlook for the rest of the session:

--MCX Dec gold seen at INR 127,300–INR 129,200 per 10 grams

--MCX Dec silver seen at INR 161,906-INR 167,500 per kg

End

 

US$1 = INR 87.82

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

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 /+91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.