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Informist, Wednesday, Nov. 26, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold rose Wednesday to a near two-week high on both the Multi Commodity Exchange of India and COMEX, as soft US economic data reinforced investors' expectations of a rate cut by the US Federal Reserve in December. Market participants cautiously await the weekly jobless claims data, due later in the day, for further cues on the Fed's policy outlook.

 

At 1609 IST, the most-active December GOLD contract on the MCX was up 0.6% at INR 125,950 per 10 grams. The most-active February 

contract on the COMEX rose 0.5% to $4,196.4 per ounce. The gold contract on the MCX rose to a near two-week high of INR 126,078 per 10 grams, and on the COMEX it rose to $4,203.2 per ounce.

 

On Tuesday, the Commerce Department's Census Bureau said US retail sales rose 0.2%, less than the market estimate of 0.4%, according to economists polled by Reuters. The US consumer confidence index reading fell to 88.7 in November from an upwardly revised 95.5 in October. Economists polled by Reuters had forecast a reading of 93.4 for November. The producer price index increased 0.3% in September after a 0.1?ll in August, in line with market expectations.   

 

According to the CME's FedWatch tool, 84.3% of traders are now pricing in a 25-basis-point rate cut in December, up from 50.1% a week ago. Typically, lower interest rate environment boosts the appeal of non-yielding precious metals.

 

Additionally, gold prices also rose as Kevin Hassett, a close ally of US President Donald Trump, emerged as the frontrunner for the next Fed chair. "Prices may rally as White House National Economic Council Director Kevin Hassett emerged as the frontrunner to serve as the next Fed chair. Investors may further boost bets on lower rates next year as he is seen more dovish, caring out aggressive reductions in borrowing costs," ICICI Direct said in a report.  

 

However, gains in gold prices were capped on improving prospects of a Ukraine peace deal. If this happens, it will be a major development and the market will react to it and gold prices will go down, Ajay Kedia, director of Kedia Advisory, said. On Tuesday, President Volodymyr Zelenskyy said Ukraine is ready to advance a US-backed framework for ending the war with Russia. Moreover, US President Donald Trump backed away from imposing any deadline to reach a peace deal and said that his special envoy, Steve Witkoff, will be going to Moscow to meet Russian President Vladimir Putin next week.

 

SILVER contracts on the MCX and COMEX rose, tracking a rise in gold contracts. At 1609 IST, the most-active December silver contract on the MCX was up 1.6% at INR 158,843 per kg. The most-active March contract on the COMEX rose 2% to $52.60 per ounce. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 124,500–INR 127,000 per 10 grams

--COMEX gold seen at $4,160.0–$4,225.0 an ounce

--MCX silver seen at INR 156,500-INR 160,500 per kg

--COMEX silver seen at $52.00-$53.00 an ounce

 

End

 

US$1 = INR 89.27

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

 

Edited by Subhojit Sarkar

 

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