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Informist, Tuesday, Dec. 2, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Excahnge of India and the COMEX fell Tuesday as investors booked profits after prices rose to a six-week high in the previous session, analysts said. Gold prices rose to a six-week high on Monday due to rising expectations of a rate cut by the US Federal Reserve on Dec. 10.

 

At 1544 IST, the most-active February GOLD contract on the MCX was down 0.9% at INR 129,602 per 10 grams. The most-active 

February contract on the COMEX was down 1.2% to $4,221.6 per ounce.

 

However, the downside in gold prices was limited due to rising expectations of a rate cut by the US Federal Reserve next week, analysts said. According to the CME's FedWatch tool, 87.2% of traders are now pricing in a 25-basis-point rate cut in December, while 12.8% of traders anticipate no change in interest rates. Typically, a lower interest rate environment boosts the appeal of non-interest yielding precious metals. 

 

Data released Monday showed manufacturing in the US contracted for the ninth straight month in November, as the Institute for Supply Management's manufacturing purchasing managers' index dropped to 48.2 in November from 48.7 a month earlier. The weak economic data boosted expectations of a rate cut by the US Federal Reserve next week. "A series of dovish comments from Fed officials, combined with weak US economic indicators after the prolonged government shutdown, strengthened market bets," Kedia Advisory said in an email. 

 

Market participants are now waiting for a delayed September report on the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, due on Friday. 

 

SILVER contracts on the MCX and COMEX were down, due to profit-booking after prices hit a record high in the previous session, analysts said. However, the fall in prices was limited due to increasing expectations of a rate cut.

 

Silver prices are expected to rise to INR 200,000 per kg in 2025 due to weak US data and rising expectations of a rate cut by the US Federal Reserve, Kedia Advisory said in a report. Prices will also be supported by its addition to the US critical mineral list, worries around tariffs, low inventories in Shanghai and London, and large inflows into the iShares Silver Trust ETF, it said in the report. 

 

At 1545 IST, the most-active March silver contract on the MCX was down 2.37% at INR 177,797 per kg. The most-active March contract on the COMEX was down 2.7% at $57.55 per ounce. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 128,500–INR 132,000 per 10 grams

--COMEX gold seen at $4,200.0–$4,290.0 an ounce

--MCX silver seen at INR 177,000-INR 180,500 per kg

--COMEX silver seen at $57.50-$58.50 an ounce

 

End

 

US$1 = INR 89.87

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

 

Edited by Avishek Dutta

 

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