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Informist, Thursday, Dec. 18, 2025

By Reshma Ravi

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India on Thursday, tracking the contracts on the COMEX that fell due to a strong dollar. Gold prices also fell as market participants await the US consumer price index, later in the day. The report will provide investors further cues on the US Federal Reserve's rate cut path in 2026.

At 1608 IST, the most-active February GOLD contract on the MCX was down 0.4% at INR 134,331 per 10 grams. The most-active February contract on the COMEX was down 0.4% at $4,356.1 per ounce. Meanwhile, Mumbai spot gold of 99.9% purity edged slightly higher to INR 132,430–INR 132,531 per 10 grams on Thursday, from INR 132,330–INR 132,531 per 10 grams on Wednesday.

At 1609 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was up 0.1% at 98.53. A strong dollar makes commodities priced in the currency, such as gold, less appealing for those holding other currencies, thereby, denting demand.

The fall in gold prices was limited due to rising safe-haven demand amid ongoing geopolitical tensions between the US and Venezuela. US President Donald Trump ordered a complete blockade of all sanctioned Venezuelan tankers entering and leaving Venezuela. Trump's comments came after the US seized a sanctioned oil tanker off Venezuela's coast a week earlier. "The US leader is also pressuring his Venezuelan counterpart Nicolas Maduro amid a military buildup in the region and the threat of land strikes," Nirmal Bang Securities said in a report. 

On Tuesday, the US labour market data showed further cooling, with the unemployment rate rising to an over four-year peak at 4.6% in November, higher than the 4.4% expected in a Reuters survey. "This has reinforced expectations of up to two rate cuts in 2026, with nearly 59 basis points of easing already priced in," Kedia Advisory said in a note. Typically, a lower-interest-rate environment boosts the appeal of non-interest-yielding precious metals.      

"We remain positive on our gold outlook, with macro tailwinds and fundamentals pointing to further upside next year. We expect gold prices to reach new record highs in 2026. The downside should be limited, as any weakness will likely attract renewed interest from both retail and institutional buyers," ING analysts said in a report.

SILVER contracts on the MCX and COMEX fell Thursday due to profit booking after the prices hit a record high in the previous session. The record high was due to expectations of a rate cut by the Fed in 2026 and strong industrial demand for silver from renewables, grid infrastructure, and artificial intelligence-linked technologies.

"Investor appetite remains strong, as silver-backed ETFs (exchange-traded funds) continue to attract inflows. The outlook remains constructive into 2026, supported by robust industrial demand from solar PV (photovoltaic) installations and battery technologies, alongside sustained investment flows," the ING analysts said.

At 1428 IST, the most-active March silver contract on the MCX was down 0.8% at INR 205,810 per kg. The most-active March contract on COMEX was down 1% at $66.15 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 132,000–INR 136,000 per 10 grams

--COMEX gold seen at $4,310.0–$4,420.0 an ounce

--MCX silver seen at INR 200,000-INR 212,000 per kg

--COMEX silver seen at $65.70-$67.00 an ounce

End

US$1 = INR 90.25

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

Edited by Akul Nishant Akhoury

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