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Informist, Thursday, Dec. 4, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX fell Thursday as investors took profits, analysts said. Market participants cautiously await US weekly jobless claims data, due later in the day, for further cues on an interest rate cut by the US Federal Reserve next week.

 

At 1529 IST, the most-active February GOLD contract on the MCX was down 0.4% at INR 129,940 per 10 grams. The most-active 

February contract on COMEX was down 0.2% at $4,227.5 per ounce.

 

The fall in gold prices was limited by rising expectations of a rate cut by the Fed, Manoj Jain, director and head of commodity research at Prithvi Finmart, said. The expectations rose after weak US economic data. The ADP employment report showed private payrolls fell unexpectedly in November. Private-sector employment fell by 32,000 positions last month. Economists surveyed by Reuters had predicted a rise of 10,000 jobs. "... weaker economic data cemented expectations that the Fed will cut interest rates at its meeting next week," SMC Global Securities said in a report.

 

According to the CME's FedWatch tool, 89.2?dfund futures traders are now pricing in a 25-basis-point rate cut in December, while 10.8% of traders anticipate no change in interest rates. Typically, a lower interest rate environment boosts the appeal of precious metals which do not yield any interest.

 

Meanwhile, US President Donald Trump said he plans to announce his pick to replace Jerome Powell as Fed chair early next year. Kevin Hassett, director of the White House's National Economic Council and a close Trump ally, has emerged as the frontrunner. "Prices may rally as White House National Economic Council Director Kevin Hassett emerged as the frontrunner to serve as the next Fed chair," broking firm ICICI Direct said in a report. "Investors may further boost bets on lower rates next year as he is seen to be more dovish, carrying out aggressive reductions in borrowing costs."

 

SILVER contracts on the MCX and COMEX were down, also because of profit-taking, after prices hit a record high in the previous session, analysts said. The fall in prices was limited by expectations of rate cuts by the Fed.

 

At 1531 IST, the most-active March silver contract on the MCX was down 1.6% at INR 179,468 per kg. The most-active March contract on COMEX was down 1.3% at $57.85 per ounce. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 128,000–INR 131,000 per 10 grams

--COMEX gold seen at $4,170.0–$4,250.0 an ounce

--MCX silver seen at INR 177,000-INR 181,000 per kg

--COMEX silver seen at $57.00-$58.00 an ounce

 

End

 

US$1 = INR 89.97

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

 

Edited by Rajeev Pai

 

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