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Informist, Friday, Nov. 14, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and the COMEX on Friday due to profit booking as the dollar index rose following the reopening of the US government, boosting investors' confidence in riskier assets, analysts said. Gold prices also fell due to fading expectations of a rate cut by the US Federal Reserve in December, following hawkish comments by Fed officials.

 

At 1651 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 99.37. A strong dollar makes commodities priced in the currency, such as gold, less appealing for holders of other currencies, denting their demand.

 

At 1657 IST, the most-active December GOLD contract on the MCX was down 1% at INR 125,500 per 10 grams. The most-active December gold contract on the COMEX was down 0.6% at $4,171.5 per ounce.

 

Multiple Federal Reserve officials Thursday expressed inhibition about further rate cuts, citing concerns about inflation and signs of relative stability in the labour market after two interest rate cuts this year. The US central bank lowered its benchmark overnight interest rate by 25 basis points to the 3.75-4.00% range last month.

 

San Francisco Fed President Mary Daly, who was strongly supporting a rate cut in December, said any decision about four weeks ahead of the next policy meeting was "premature". "I have an open mind, but I haven't made a final decision on what I think, and I'm looking forward to debating with my colleagues," Reuters quoted Daly as saying.

 

Minneapolis Fed President Neel Kashkari said that he was on the fence about a December rate cut. Meanwhile, Fed Bank of Cleveland President Beth Hammack said interest rate policy should remain restrictive in order to put downward pressure on still concerning levels of inflation. Boston Fed President Susan Collins said due to limited information on inflation amid the government shutdown, she would be hesitant to ease policy further.

 

According to the CME's FedWatch tool, 49.6% of traders are now pricing in a 25-basis-point rate cut in December, down from 66.9% a week ago.

 

"The reopening of the government and improving US–China trade relation also reduced safe-haven demand," Kotak Securities said in a report.

 

Going forward, the fall in gold prices may be softened for various factors. "Sharp fall in the prices may be cushioned on strong central bank demand for gold and as the concern over Fed independence resurfaces," ICICI said in a report.

 

SILVER contracts fell on the MCX and on the COMEX, tracking gold. At 1649 IST, the most-active December silver contract on the MCX was down 1% at INR 161,088 per kg. The same-month contract on COMEX was down 0.8% at $52.77 per ounce.

 

Outlook for the rest of the session:

--MCX gold seen at INR 124,500–INR 127,500 per 10 grams

--COMEX gold seen at $4,180.0–$4,220.0 an ounce

--MCX silver seen at INR 159,000-INR 163,000 per kg

--COMEX silver seen at $52.20-$53.20 an ounce

End

 

US$1 = INR 88.74

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

 

Edited by Ashish Shirke

 

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