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Informist, Tuesday, Nov. 4, 2025

By Afra Abubacker

NEW DELHI – Futures contracts of gold slipped on the Multi Commodity Exchange of India and COMEX Tuesday, pressured by a stronger dollar and fading expectations of an interest rate cut by the US Federal Reserve later this year. Sentiments were further dampened by concerns over Chinese demand, after Beijing reduced tax rebates for gold jewellery. 

At 1903 IST, the most-active December GOLD contract on the MCX was down 0.6% at INR 120,666 per 10 grams. The most-active December gold contract on COMEX was down 0.5% at $3,993.6 per ounce. "The gold price has slipped back below the $4,000 per-ounce mark. Headwinds are coming from fading expectations of interest rate cuts," Commerzbank said in a research report.

Federal Reserve Bank of Atlanta President Raphael Bostic said a rate cut in December was not locked in, while Federal Reserve Bank of Cleveland President Beth Hammack said she was open to reforming the interest rate target used by the Fed to implement monetary policy. Meanwhile, Fed Governor Christopher Waller made the case for more policy easing to shore up a weakening labour market. Fed fund futures traders are now pricing in a 71% chance of a 25 basis-point cut at the December meeting, according to CME's FedWatch tool.

"Gold may remain under pressure in the near term as the stronger dollar and reduced rate-cut expectations limit upside momentum," Kotak Securities said. In addition, gold prices fell after Beijing tweaked a long-standing tax exemption for the yellow metal, which is likely to hit retail demand in China. Saturday, Beijing announced it would cut the full 13% value-added tax exemption to 6% for certain gold purchases such as jewellery and industrial applications. 

"The changes mentioned above are therefore equivalent to a 7% tax increase on certain gold purchases, which is likely to have an impact on the corresponding segments of demand. Demand for gold jewellery in China was already weak this year due to the significant increase in prices," Commerzbank said. 

SILVER contracts fell on the MCX and COMEX. At 1903 IST, the most-active December silver contract on the MCX was down 1.4% at INR 145,709 per kilogram. The same-month contract on COMEX was down 1.5% at $47.31 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 120,012–INR 121,880 per 10 grams

--COMEX gold seen at $3,951.7–$4,024.9 an ounce

--MCX silver seen at INR 144,882-INR 148,058 per kg

--COMEX silver seen at $47.10-$48.24 an ounce

End

US$1 = INR 88.65

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

Edited by Rajeev Pai

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