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Informist, Tuesday, Dec. 30, 2025

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX rose Tuesday due to rising safe-haven demand amid geopolitical tensions between Russia and Ukraine. Gold prices also rose ahead of the release of minutes of the US Federal Open Market Committee's December policy meeting, due later in the day, which will help gauge the central bank's interest rate trajectory. Earlier this month, the FOMC cut the federal funds target range by 25 basis points for the third straight meeting to 3.50-3.75%, as widely expected.

 

At 1640 IST, the most-active February GOLD contract on the MCX was up 1% at INR 136,418 per 10 grams. The most-active February gold contract on COMEX was up 1.5% at $4,398.8 per ounce.

 

Geopolitical tensions between Russia and Ukraine and expectations of rate cuts by the US Federal Reserve in 2026 supported prices, Manoj Jain, director, Prithvi Finmart, said. On Monday, Russia accused Ukraine of launching a drone attack on the presidential residence in northern Russia, due to which Moscow now plans to review its position in peace talks. Ukraine dismissed Russian statements about the attack and its foreign minister said Moscow was seeking "false justifications" for further strikes. 

 

Fed funds futures traders are pricing in two rate cuts by the US Federal Reserve next year. Typically, a lower interest-rate environment boosts the appeal of non-interest-yielding precious metals. "Interest rate cuts and bets of further easing by the US Federal Reserve, geopolitical conflicts, robust demand from central banks, and rising holdings in exchange-traded funds have fuelled gold's rally this year," SMC Global Securities said in a report.

 

SILVER contracts on the MCX and COMEX were up Tuesday. At 1642 IST, the most-active March silver contract on the MCX was up 5% at INR 236,099 per kg. The most-active March silver contract on COMEX was up 5% at $74.16 per ounce. Silver prices are also being supported by a rise in demand from solar panel factories, medical device makers, electric vehicle manufacturers, data centre developers, and continued growth in electronics production globally.

 

Spot gold of 99.9% purity was trading in the Mumbai market at INR 141,000 per 10 grams, up from INR 136,781 per 10 grams Monday. Spot silver of 99.9% purity edged higher at INR 245,000 per kg, compared with INR 235,440 per kg Monday, Kumar Jain, spokesperson, India Bullion and Jewellers Association, said. "As of now there is no discount on gold and silver prices," the jeweller said. 

 

Outlook for the rest of the session:

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

--COMEX gold seen at $4,330.0–$4,450.0 an ounce

--MCX silver seen at INR 234,000-INR 238,500 per kg

--COMEX silver seen at $73.50-$74.60 an ounce

 

End

 

US$1 = INR 89.79

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

 

Edited by Tanima Banerjee

 

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