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Informist, Monday, Oct. 27, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and COMEX Monday as easing trade tensions between the US and China weighed on the safe haven demand for the precious metal.

 

At 1550 IST, the most-active December GOLD contract on the MCX was down 1.2% at INR 121,950 per 10 grams. The most-active December gold contract on COMEX was down 1.9% at $4,060.4 per ounce.

 

On Saturday, top officials from the US and China ended their first day of talks in Kuala Lumpur. US Treasury Secretary Scott Bessent described the trade talks between the two countries as "constructive," Reuters reported. The US and China have agreed to a framework trade deal, which will be discussed when US President Donald Trump and Chinese President Xi Jinping meet later this week. Trump's threat of 100% tariffs on Chinese goods "is effectively off the table," Bloomberg quoted Bessent as saying to CBS News.

 

"This potential trade deal between the US and China really came out of the blue and has been a positive surprise for the markets broadly. Obviously, the flip side of that is the developments have been negative for gold," Capital.com's analyst Kyle Rodda was quoted as saying by Reuters.

 

However, in the near term, gold prices will rise due to expectations of a rate cut by the US Federal Reserve this year, Manoj Jain, director at Prithvi Finmart, said. According to CME's FedWatch tool, 96.7% of traders are pricing in a 25-basis-point rate cut in the FOMC meet outcome Wednesday. Over 95.7% are pricing in another 25-bps cut in December. Lower interest rates increase the appeal of the non-interest-yielding precious metals.

 

SILVER contracts also fell on the MCX and COMEX as trade tensions between the US and China eased. At 1555 IST, the most-active December silver contract on the MCX was down 1.3% at INR 145,600 per kg. The same-month contract on COMEX was down 1.8% at $47.70 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 120,500–INR 123,000 per 10 grams

--COMEX gold seen at $4,010.0–$4,100.0 an ounce

--MCX silver seen at INR 144,000-INR 147,000 per kg

--COMEX silver seen at $47.00-$48.00 an ounce

End

 

US$1 = INR 88.24

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

 

Edited by Nishant Maher

 

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