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Informist, Tuesday, Dec. 9, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on Multi Commodity Exchange of India and COMEX rose Tuesday as investors are expecting a rate cut by the US Federal Reserve on Wednesday, analysts said. Gold prices also rose due to rising safe-haven demand amid geopolitical tensions.

 

At 1540 IST, the most-active February GOLD contract on the MCX was up 0.1% at INR 130,037 per 10 grams. The most-active 

February contract on the COMEX was up 0.4% at $4,235.9 per ounce. Meanwhile, Mumbai spot gold of 99.9% purity edged lower to INR 127,300–INR 127,410 per 10 grams Tuesday, from INR 128,264–INR 128,414 per 10 grams Monday.

 

According to the CME's FedWatch tool, 89.4?dfund futures traders are now pricing in a 25-basis-point rate cut in December, while 10.6% 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.

 

Gold prices also rose due to the weak dollar. At 1542 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.1% at 99.01. A weaker dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand. 

 

Additionally, US President Donald Trump may walk away from supporting the Ukrainian war efforts against Russia, the American leader's son said while speaking at a West Asia conference on Sunday. This comes amid slow progress in Russia-Ukraine ceasefire talks and keeps geopolitical risks in play, which is seen as another factor supporting the safe-haven commodity.

 

Market participants await Fed Chair Jerome Powell's remarks for cues on future monetary policy, said Manoj Jain, director, Prithvi Finmart Pvt. Ltd. "With the Fed meeting now the dominant driver, we expect metals to remain range-bound until (Fed Chair) Powell provides clearer guidance on the pace of easing beyond December," a note by analysts from Sucden Financial was quoted by Dow Jones as stating. 

 

SILVER contracts on the MCX and COMEX were up as investors are expecting a rate cut by the Fed on Wednesday. At 1545 IST, the most-active March silver contract on the MCX was up 0.2% at INR 182,051 per kg. The most-active March contract on COMEX was up 0.5% at $58.67 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–$4,240.0 an ounce

--MCX silver seen at INR 180,500-INR 183,500 per kg

--COMEX silver seen at $58.00-$59.10 an ounce

End

 

US$1 = INR 89.88

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

 

Edited by Akul Nishant Akhoury

 

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