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Informist, Wednesday, Dec. 10, 2025

 

By Reshma Ravi

 

MUMBAI - Futures contracts of silver hit a record high on the Multi Commodity Exchange of India and COMEX on Wednesday due to rising expectations of a rate cut by the US Federal Reserve. Silver prices also rose due to higher demand, dwindling visible inventories, and renewed inflows into exchange-traded funds.

 

At 1505 IST, the most-active March silver contract on the MCX was up 1% at INR 189,833 per kg, after hitting a high of INR 191,800 per kg earlier in the day. The most-active March contract on COMEX was up 1% at $61.53 per ounce, after hitting a high of $62.14 per ounce. 

 

Silver prices rose on increasing expectations that the US Federal Reserve will cut rates. According to the CME's FedWatch tool, 87.6% of Fed fund futures traders are now pricing in a 25-basis-point rate cut, while nearly 12.4% of traders anticipate no change in interest rates. Typically, lower interest rates boost the appeal of non-interest-yielding precious metals such as silver.

 

Demand for silver is expected to rise further due to demand from vital technology sectors, the Silver Institute said in a release Tuesday. Sectors such as solar energy, automotive electric vehicles and their infrastructure, data centres and artificial intelligence will drive industrial demand for silver higher through 2030, the institute said. "Silver's superior electrical and thermal conductivity properties are increasingly essential to the technological transformation driving the global economy."  

 

Silver-backed exchange-traded funds have added nearly 200 tonnes, pushing total holdings to their highest levels since 2022, Kedia Advisory said in a note. A significant volume of silver moved into London last month, tightening availability in the other market, while Shanghai Futures Exhange inventories fell to their lowest in a decade, it said. Chinese exports spiked to a record 660 tonnes in October, further reshuffling global supply flow, it said.  

 

Futures contracts of gold fell on MCX and COMEX as investors remained cautious ahead of the Federal Open Market Committee's decision at 0030 IST Thursday. However, the fall was limited as market participants expect the Fed to cut interest rates by 25 basis points. "Gold is likely to gain after Fed meeting outcomes and could test $4,350-4,380/INR 133,000-135,000," Manoj Jain, director, Prithvi Finmart Pvt. Ltd. told Informist. Market participants await Fed Chair Jerome Powell's remarks for cues on future monetary policy, Jain said. 

 

At 1505 IST, the most-active February GOLD contract on the MCX was down 0.1% at INR 129,933 per 10 grams. The most-active 

February contract on the COMEX was down 0.3% at $4,225.5 per ounce. Meanwhile, Mumbai spot gold of 99.9% purity edged higher at INR 128,013–INR 128,213 per 10 grams Wednesday, from INR 127,972–INR 128,013 per 10 grams Tuesday.

 

Outlook for the rest of the session:

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

--COMEX gold seen at $4,180.0–$4,260.0 an ounce

--MCX silver seen at INR 187,000-INR 192,000 per kg

--COMEX silver seen at $61.00-$62.10 an ounce

End

 

US$1 = INR 89.96

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

 

Edited by Vandana Hingorani

 

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