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Informist, Thursday, Oct. 23, 2025

By Reshma Ravi

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX on Thursday due to safe-haven demand amid rising geopolitical tensions between the US and Russia. Expectation of additional rate cuts by the US Federal Reserve this year also supported gold.

At 1619 IST, the most-active December GOLD contract on the MCX was 1.3% higher at INR 123,434 per 10 grams. The most-active December gold contract on COMEX rose 1.6% to $4,130.8 per ounce.

The US announced substantial new sanctions on Russia's two biggest oil companies, Rosneft and Lukoil, as the conflict between Russia and Ukraine persisted. US President Donald Trump said he had called off a planned meeting with Russian President Vladimir Putin in Hungary. Meanwhile, gold prices also found support as the Trump administration is considering curbs on software-powered exports to China, such as those of laptops and jet engines, after a fresh round of rare earth export restrictions by China.

Gold prices fell around 1% Wednesday after it fell 6% Tuesday in its biggest daily loss in several years as traders and investors booked profits after a historic rally in prices. "We expect corrections in gold prices in the near term due to a rise in the dollar index," said Ajay Kedia, director of Kedia Stocks and Commodities Research Pvt. Ltd. At 1634 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 99.09. A stronger dollar makes dollar-denominated commodities expensive for those holding other currencies, thereby denting demand.

"The forceful correction shows how one-sided the focus had become leading to a natural reset after a powerful nine-week rally that saw gold gain 31% and silver 45%. As mentioned, beyond the firmer dollar, the main catalyst was softer Indian demand in the aftermath of Diwali," Ole Hansen, head of commodity strategy at Saxo Bank, said in a note.

Market participants await the US consumer price index data, due Friday, which was delayed due to the ongoing US government shutdown. A poll by The Wall Street Journal forecast the print at 3.1% on year, up from 2.9% in August. Core inflation is expected to remain at 3.1%.

SILVER contracts rose on the MCX and COMEX on safe-haven appeal amid rising geopolitical tensions. At 1645 IST, the most-active December silver contract on the MCX was up 2.2% at INR 148,823 per kilogram. The same-month contract on COMEX was 2.5% higher at $48.87 per ounce. Silver prices also corrected significantly in the past two sessions as investors booked profits. Silver prices fell 0.2% on Wednesday after it fell over 7% Tuesday. "Both metals needed a correction to prevent the rally from morphing into a bubble that might later burst even more violently," Hansen said.

Outlook for the rest of the session:

--MCX gold seen at INR 122,000–INR 125,000 per 10 grams

--COMEX gold seen at $4,080.0–$4,180.0 an ounce

--MCX silver seen at INR 146,000–INR 152,000 per kg

--COMEX silver seen at $48.00–$49.50 an ounce

End

US$1 = INR 87.84

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

Edited by Subhojit Sarkar

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