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Informist, Wednesday, Dec. 3, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of silver hit a fresh record high on the Multi Commodity Exchange of India and COMEX Wednesday due to growing expectation of rate cut by the US Federal Reserve next week and tight supplies. Price also rose due to weak dollar. 

 

At 1655 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.3% at 99.02. A weaker dollar makes dollar-denominated commodities such as gold and silver cheaper for those holding other currencies, aiding demand. 

 

At 1703 IST, the most-active March SILVER contract on the COMEX was up 0.1% at $58.72 per ounce after touching a record high of $59.65 per ounce. On the MCX, the same-month contract was 0.6% higher at INR 182,651 per kilogram after hitting an all-time high of INR 184,727 per kg.

 

Silver prices rose on increasing expectations that the US Federal Reserve will cut rates. "A string of weak US macro indicators, including the ninth consecutive month of contraction in manufacturing, has strengthened the case for monetary easing," Kedia Advisory said in an email. According to the CME's FedWatch tool, 87% of Fed fund traders are now pricing in a 25-basis-point rate cut next week, while 13% of traders anticipate no change in interest rates. Typically, a lower interest rate environment boosts the appeal of non-yielding precious metals.  

 

Silver prices also rose due to supply concern. "On the physical front, global supply tightness continues to underpin prices. Chinese silver stockpiles have dropped to their lowest levels since 2015 while trading volumes on the Shanghai Gold Exchange have slumped to a nine-year low," Kedia Advisory said in a note. 

 

"The price of silver has doubled since the beginning of the year. This means that silver is also on the verge of its strongest annual increase since 1979. The price increase for silver is also stronger than that for gold, as reflected in the decline in the gold/silver ratio to 72," Commerzbank said in a report. 

 

Futures contracts of gold on the Multi Commodity Exchange of India and COMEX rose Wednesday due to expectation of a Fed rate cut next week. Gold prices also rose due weak dollar.   

 

At 1705 IST, the most-active February GOLD contract on the MCX was up 0.4% at INR 130,323 per 10 grams. The most-active February

contract on the COMEX was up 0.2% to $4,231.0 per ounce. 

 

"Additionally, reports suggest that Kevin Hassett is the frontrunner to succeed Fed Chair Jerome Powell, adding to dovish market expectations and keeping interest rate-sensitive assets like Gold in focus," Kedia Advisory said. "Traders are closely monitoring this week's US macroeconomic releases, including Wednesday's ADP private-sector employment report (Automatic Data Processing National Employment Report) and Institute for Supply Management Purchasing Managers' Index, alongside Friday's Personal Consumption Expenditure Price Index," it said.

 

Outlook for the rest of the session:

--MCX gold seen at INR 129,000–INR 132,000 per 10 grams

--COMEX gold seen at $4,180.0–$4,280.0 an ounce

--MCX silver seen at INR 180,000-INR 184,800 per kg

--COMEX silver seen at $58.20-$59.40 an ounce

End

 

US$1 = INR 90.19

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

 

Edited by Akul Nishant Akhoury

 

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