More Stories

Informist, Friday, Dec. 19, 2025

By Reshma Ravi

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India Friday, tracking the fall in contracts on the COMEX due to a firm dollar. However, the fall in prices was limited as slower-than-expected rise in US inflation reinforced expectations of further rate cuts by the US Federal Reserve next year. 

At 1646 IST, the most-active February GOLD contract on the MCX was down 0.6% at INR 133,733 per 10 grams. The most-active February contract on the COMEX was down 0.2% at $4,356.7 per ounce. Meanwhile, Mumbai spot gold of 99.9% purity was at INR 132,229–INR 132,430 per 10 grams on Friday, compared to INR 132,330–INR 132,400 per 10 grams on Thursday.

At 1648 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was up 0.3% at 98.67. A strong dollar makes commodities priced in the currency, such as gold, less appealing to those holding other currencies, thereby, denting demand.

However, the losses were limited due to lower-than-expected US CPI data, which raised the expectations of a rate cut by the US Fed in 2026, Manoj Jain, director, Prithvi Finmart, said. On Thursday, the data showed that US consumer prices rose lower than expected on an annual basis in November. The Labor Department's Bureau of Labor Statistics did not publish month-to-month CPI changes after the 43-day shutdown of the government prevented the collection of October data. The US consumer prices rose 2.7% on year in November, against a 3.1% increase forecast by economists polled by Reuters.  

"Federal Reserve Governor Christopher Waller reiterated that the US central bank still has room to cut interest rates, estimating policy rates to be around 50–100 basis points above neutral. While he emphasised there is no urgency for aggressive action, he acknowledged that the US labour market is gradually softening, allowing the Fed to ease policy at a measured pace if required," Kedia Advisory said in a note.

Meanwhile, on Wednesday, US President Donald Trump said that the next Fed Chair will be someone who believes in lower interest rates "by a lot". He further stated that he will soon announce a successor to the current Fed Chair Jerome Powell.   

SILVER contracts rose both on the MCX and COMEX on Friday. At 1651 IST, the most-active March silver contract on the MCX was up 0.7% at INR 204,925 per kg. The most-active March contract on COMEX was up 1.2% at $66.00 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 132,000–INR 135,500 per 10 grams

--COMEX gold seen at $4,300.0–$4,420.0 an ounce

--MCX silver seen at INR 203,000-INR 209,000 per kg

--COMEX silver seen at $65.50-$66.80 an ounce

End

US$1 = INR 89.27

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

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.