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Informist, Wednesday, Oct. 29, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX Wednesday due to expectations of a rate cut by the US Federal Reserve. The Federal Open Market Committee's monetary policy decision is due later in the day. Market participants will closely monitor any forward looking statements by Fed Chair Jerome Powell.

 

At 1608 IST, the most-active December GOLD contract on the MCX was up 1.5% at INR 121,484 per 10 grams. The most-active December gold contract on COMEX was up 1.4% at $4,040.4 per ounce.

 

Investors expect a rate cut of 25 basis points as US consumer price index data for September was weaker than expected. The US consumer price index rose 0.3% on month in September, against an increase of 0.4% forecast by economists polled by Reuters, after climbing 0.4% in August. According to CME's FedWatch tool, traders are fully pricing in a 25-bps rate cut at the US central bank's meeting, the outcome of which is due later in the day. Lower interest rates increase the appeal of the non-interest yielding precious metal.

 

Market participants are also looking forward to the outcome of the meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea on Thursday, analysts said. In the previous session, gold fell to a nearly four-week low as easing trade tensions between the US and China weighed on the safe-haven demand for the precious metal.

 

Investors also expect dovish statements from Fed Chair Jerome Powell for cues on a further rate cut in December, said Manoj Jain, director at Prithvi Finmart.

 

SILVER contracts also rose on the MCX and COMEX due to expectations of a rate cut by the US Fed later in the day. At 1617 IST, the most-active December silver contract on the MCX was up 2.1% at INR 147,391 per kilogram. The same-month contract on the COMEX was up 1.9% at $48.23 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 120,000–INR 122,500 per 10 grams

--COMEX gold seen at $3,960.0–$4,080.0 an ounce

--MCX silver seen at INR 146,000-INR 149,000 per kg

--COMEX silver seen at $47.60-$48.80 an ounce

End

 

US$1 = INR 88.19

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

 

Edited by Ashish Shirke

 

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