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Informist, Friday, Oct. 31, 2025

 

By Reshma Ravi 

 

MUMBAI – Futures contracts of gold rose on Multi Commodity Exchange and COMEX on Friday due to prospects of continued demand from central banks. Safe-haven demand for gold also rose after US President Donald Trump and Chinese President Xi Jinping failed to sign a trade deal but agreed to a one-year extension of the US-China trade truce.

 

At 1537 IST, the most-active December GOLD contract on the MCX was up 0.2% at INR 121,814 per 10 grams. The most-active December gold contract on COMEX was up 0.1% at $4,020.7 per ounce.

 

The gains in gold are mainly due to continued demand from central banks. Gold demand from central banks rose 28% on quarter to an estimated net 220 tonnes in Jul-Sept, the World Gold Council said in a report. "Central banks are likely to continue their buying spree," the council said. 

 

Market sentiment was also lifted as US President Donald Trump and Chinese President Xi Jinping did not sign a trade deal but agreed to a one-year extension of the US-China trade truce, said Ajay Kedia, director of Kedia Stocks and Commodities Research Pvt. Ltd. However, Trump agreed to lower tariffs on Chinese goods to 47% from 57% and fentanyl tariffs on Chinese goods to 10% from 20%. China agreed to crack down on illicit fentanyl trade, pause tightening of export controls on rare earth minerals, and resume purchases of US soybeans. 

 

However, gains in gold were limited amid hawkish statements by US Federal Reserve Chair Jerome Powell, who said there was a limited possibility of another rate cut in December. "Officials are struggling to reach a consensus about what lies ahead for monetary policy, and that financial markets should not assume another rate cut will happen at the end of the year," Reuters quoted Powell as saying. Powell said the December rate cut was "far from" a foregone conclusion. Typically, high interest rates reduce the appeal of non-interest-yielding precious metals.

 

SILVER contracts fell on the MCX and COMEX. At 1537 IST, the most-active December silver contract on the MCX was down 0.2% at INR 148,515 per kilogram. The same-month contract on the COMEX was down 0.5% at $48.36 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 120,200–INR 122,800 per 10 grams

--COMEX gold seen at $3,970.0–$4,060.0 an ounce

--MCX silver seen at INR 147,000-INR 150,500 per kg

--COMEX silver seen at $47.80-$49.00 an ounce

End

 

US$1 = INR 88.76

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

 

Edited by Saji George Titus

 

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