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Informist, Monday, Nov. 3, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX Monday on prospects of continued demand from central banks. However, the gains were capped as easing trade tensions between the US and China weighed on safe-haven demand for gold.

 

At 1610 IST, the most-active December GOLD contract on the MCX was up 0.3% at INR 121,554 per 10 grams. The most-active December gold contract on COMEX was up 0.8% at $4,029.4 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 220 tonnes net in Jul-Sept, the World Gold Council said in a report. "Central banks are likely to continue their buying spree," the council said.

 

However, the gains in gold prices were capped as US-China trade tensions eased. US President Donald Trump agreed to lower tariffs on Chinese goods to 47% from 57%, cutting fentanyl tariffs on Chinese goods to 10% from 20%. China agreed to crack down on the illicit trade in fentanyl precursor chemicals, pause tightening of export controls on rare earth minerals, and resume purchases of US soybeans.

 

The gains were also capped because of hawkish remarks from US Federal Reserve Chair Jerome Powell, who said there was limited possibility of another rate cut in December. According to the CME's FedWatch tool, traders are now pricing in a 69.3% chance of a 25 basis-point cut at the December meeting, which is down from 94.4% a week ago.

 

SILVER contracts rose on the MCX and COMEX. At 1610 IST, the most-active December silver contract on the MCX was up 0.3% at INR 148,750 per kilogram. The same-month contract on COMEX was up 0.9% at $48.57 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 121,200–INR 123,000 per 10 grams

--COMEX gold seen at $3,980.0–$4,080.0 an ounce

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

--COMEX silver seen at $48.00-$49.20 an ounce

 

End

 

US$1 = INR 88.77

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

 

Edited by Rajeev Pai

 

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