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Informist, Friday, Dec. 5, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India rose on Friday, tracking gains in contracts on the COMEX due to a weak dollar. Gold prices also rose due to rising expectations of a rate cut by the US Federal Reserve next week. Market participants are cautiously waiting for the US personal consumption expenditures price index, the Fed's preferred inflation gauge, which is due later in the day.

 

At 1515 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.1% at 98.95. A weaker dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand. 

 

At 1520 IST, the most-active February GOLD contract on the MCX was up 0.4% at INR 130,650 per 10 grams. The most-active February contract on COMEX was up 0.1% at $4,248.1 per ounce.

 

On Thursday, data showed initial claims for state unemployment benefits fell 27,000 to a seasonally adjusted 191,000 in the week ended Nov. 29, the lowest level since September 2022. Economists polled by Reuters had forecast 220,000 claims for the week. Meanwhile, on Wednesday, 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. 

 

"Despite the mixed economic data, expectations for a rate cut by the Federal Reserve remain high," Manoj Jain, director, Prithvi Finmart Pvt. Ltd., said. According to the CME's FedWatch tool, 87.2% of Fed fund futures traders are now pricing in a 25-basis-point rate cut in December, while 12.8% of traders anticipate no change in rates. Typically, a lower interest rate environment boosts the appeal of non-interest yielding precious metals.  

 

Gold prices also rose due to safe-haven demand amid geopolitical tensions. On Thursday, Russian President Vladimir Putin said some proposals in a US plan to end the war in Ukraine were unacceptable, suggesting that any deal was still some ways off. Furthermore, Putin warned again that Ukrainian troops must withdraw from the Donbas region or Russia would seize it. 

  

SILVER contracts on the MCX and COMEX rose, tracking a rise in gold contracts. At 1523 IST, the most-active March silver contract on the MCX was up 2% at INR 181,729 per kg. The most-active March contract on COMEX was up 1.7% at $58.45 per ounce. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 129,000–INR 132,500 per 10 grams

--COMEX gold seen at $4,200.0–$4,300.0 an ounce

--MCX silver seen at INR 180,000-INR 185,000 per kg

--COMEX silver seen at $58.00-$59.20 an ounce

 

End

 

US$1 = INR 88.99

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

 

Edited by Avishek Dutta

 

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