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Informist, Monday, Dec. 22, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contacts of gold and silver hit a record high on the Multi Commodity Exchange of India Monday, tracking the gains on COMEX due to a weak dollar. Prices also increased due to rising safe-haven demand amid geopolitical tensions between the US and Venezuela.

 

At 1553 IST, the most-active February GOLD contract on the MCX was up 1.5% at INR 136,140 per 10 grams, after touching a record high of INR 136,199 per 10 grams. The most-active February contract on the COMEX was up 1.4% at $4,447.6 per ounce, after touching a record high of $4,453.0 per ounce. Meanwhile, Mumbai spot gold of 99.9% purity edged higher to INR 133,484–INR 133,735 per 10 grams on Monday, compared to INR 131,908–INR 131,928 per 10 grams on Saturday.

 

At 1605 IST, the most-active March SILVER contract on the MCX was up 2.5% at INR 213,740 per kg, after touching a record high of INR 214,583 per kg. The most-active March contract on COMEX was up 2.3% at $69.05 per ounce, after touching a record high of $69.525 per ounce. Silver prices also rose due to strong industrial demand for solar panels, electric vehicles and data-center infrastructure, Kedia Advisory said.

 

At 1555 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.2% at 98.48. A weaker dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand. 

 

According to media reports, the US coast guard is pursuing a third oil tanker in international waters near Venezuela, amid increasing tensions between the two countries. This operation came after the US coastguard seized its second vessel off the coast of Venezuela as a part of a blockade ordered by US President Donald Trump.

 

"Geopolitical tensions remain a key supportive pillar" for gold, Dow Jones quoted XTB MENA's market analyst Milad Azar as saying in an email. "Frictions between the US and Venezuela could continue to escalate," the market analyst said. Tensions also persist between China and Japan, as well as in West Asia and Eastern Europe, the analyst notes.

 

Growing expectations of a rate cut by the US Federal Reserve also supported the bullion. Recent lower-than-expected US inflation data has strengthened market conviction that the Federal Reserve could deliver two more rate cuts next year, reducing opportunity costs for holding non-yielding assets, Kedia Advisory said in a note. Typically, a lower-interest-rate environment boosts the appeal of non-interest-yielding precious metals. Bullion has already gained more than 60% this year, positioning it for its strongest annual performance since 1979, it said.

 

"Moreover, appointment of a dovish US Federal Reserve chair would also fuel the prospects of loose monetary policy from the Fed and support the bullions," ICICI Direct said in report.

 

Outlook for the rest of the session:

--MCX gold seen at INR 134,500–INR 138,000 per 10 grams

--COMEX gold seen at $4,400.0–$4,500.0 an ounce

--MCX silver seen at INR 210,000-INR 217,500 per kg

--COMEX silver seen at $68.40-$69.60 an ounce

 

End

 

US$1 = INR 89.65

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

 

Edited by Tanima Banerjee

 

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