More Stories

Informist, Tuesday, Oct. 28, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold fell to a nearly four-week low on the Multi Commodity Exchange of India and COMEX Tuesday as easing trade tensions between the US and China weighed on the safe-haven demand for the precious metal.

 

At 1622 IST, the most-active December GOLD contract on the MCX was down 1.9% at INR 118,630 per 10 grams. The most-active December gold contract on COMEX was down 2.2% at $3,931.6 per ounce.

 

The US and China have agreed the framework of a trade deal, which will be discussed when US President Donald Trump and Chinese President Xi Jinping meet in South Korea Thursday. "If Trump and Xi have a productive meeting on trade this week, this could leave gold swimming against the current to some degree," Reuters quoted KCM Trade Chief Market Analyst Tim Waterer as saying. 

 

Outflows from global gold exchange-traded funds also weighed on prices, according to analysts. "The slump in prices coincides with further outflows from gold-backed ETFs; last Friday saw the biggest outflow since May 2025," ING Group said in a report.

 

However, gold prices will rebound in the near term due to the expectations of a rate cut by the US Federal Reserve this year, said Manoj Jain, director at Prithvi Finmart. According to CME's FedWatch tool, 97.8% of traders are pricing in a 25-basis-point rate cut in the FOMC meet outcome Wednesday. Around 93% of traders 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 1628 IST, the most-active December silver contract on the MCX was down 1.4% at INR 141,366 per kilogram. The same-month contract on COMEX was down 1.1% at $46.26 per ounce.

 

"The sharp price declines clearly show that the previous price rise in gold and silver was excessive. After all, the price of gold had risen by more than 60% at times since the beginning of the year. The corresponding increase for silver was a good 90%," Carsten Fritsch, commodity analyst at Commerzbank said in a report.

 

Outlook for the rest of the session:

--MCX gold seen at INR 117,000–INR 119,000 per 10 grams

--COMEX gold seen at $3,860.0–$3,960.0 an ounce

--MCX silver seen at INR 138,000-INR 142,000 per kg

--COMEX silver seen at $45.20-$46.30 an ounce

End

 

US$1 = INR 88.26

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

 

Edited by Subhojit Sarkar

 

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

Send comments to feedback@informistmedia.com

 

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