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Informist, Tuesday, Nov. 25, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold rose Tuesday to more than a one-week high on the Multi Commodity Exchange of India as well as the COMEX, due to rising expectations of a rate cut by the US Federal Reserve in December. Market sentiment was also lifted by safe-haven demand amid ongoing geopolitical tensions.

 

At 1607 IST, the most active December GOLD contract on the MCX was up 0.9% at INR 124,937 per 10 grams. The most active December contract on the COMEX was up 0.9% at $4,129.6 per ounce. The gold contract on MCX rose to a more than a one-week high of INR 125,521 per 10 grams and on COMEX, it rose to $4,152.0 per ounce.

 

Expectations of a rate cut rose due to dovish comments from central bank officials. On Monday, Fed Governor Christopher Waller said a rate cut in December was necessary as the US job market is weak. He also said rate cuts beyond December depend on upcoming US economic data which were delayed due to the government shutdown, Reuters reported. San Francisco Fed President Mary Daly also supported lowering interest rates in December due to concerns about weakness in the job market.

 

These comments came after New York Fed President John Williams on Friday said the central bank could still trim interest rates in the near term without risking its inflation goal. According to the CME FedWatch tool, 80.7% of traders are now pricing in a 25-basis-point rate cut in December, up from 50.1% a week ago.

 

Market participants are waiting for US retail sales and producer price index data for September, due later in the day, for further cues on a Fed rate cut. "If data continues to show weakness in the economic condition, it may pave the way for another rate cut in December meeting," ICICI Direct said in a report.

 

On Tuesday, Russia attacked Ukraine's capital Kyiv, striking residential buildings and energy infrastructure, The Guardian reported. This attack was followed by the talks between the US and Ukraine representatives in Switzerland over the weekend to end the Russia's war in Ukraine. This caused gold prices to rise due to safe-haven demand.

 

SILVER contracts on the MCX and COMEX rose, tracking a rise in gold contracts. At 1617 IST, the most active December silver contract on the MCX was up 1.2% at INR 156,299 per kg. The same contract on the COMEX was up 0.9% at $50.80 per ounce. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 123,500–INR 126,500 per 10 grams

--COMEX gold seen at $4,070.0–$4,140.0 an ounce

--MCX silver seen at INR 154,000-INR 158,000 per kg

--COMEX silver seen at $50.20-$51.00 an ounce

 

End

 

US$1 = INR 89.22

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

 

Edited by Tanima Banerjee

 

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