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Informist, Friday, Sept. 25, 2026

By Somen Bose

MUMBAI – Spot gold prices in India rose Friday, tracking gains on the Multi Commodity Exchange of India and COMEX. The rebound from recent lows was supported by corrections in the dollar index and global treasury yields. The prices were also supported by a fall in crude oil prices. However, the gains were limited as rising expectations of the US Federal Reserve hiking interest rates weighed down the precious metal's demand. 

The national average spot price of gold of 99.9% purity rose INR 351 per 10 grams to INR 151,136 per 10 grams Friday. The polled spot price of gold in Ahmedabad was INR 151,189 per 10 grams, according to MCX. 

At 1450 IST, the most active October gold futures contract on MCX was at INR 151,349 per 10 grams, up 0.4% from Thursday. On COMEX, the most active December futures contract was up 0.8% at $4,331.5 per ounce. At 1453 IST, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.2% at 101.08. Typically, a weak dollar makes dollar-denominated commodities such as gold cheaper for holders of other currencies, aiding its appeal.

Crude oil prices fell on optimism over the phased deal to reopen the Strait of Hormuz and lift the US economic blockade of Iran. If finalised, this agreement would improve global oil flows and ease both inflation concerns and the Fed interest rate hike bets. 

Better-than-expected US economic data and hawkish comments from Federal Reserve officials have lifted the rate hike odds. Data released Thursday showed weekly US jobless claims dropped to a two-month low, signalling a strong labor market while two more Federal Reserve policymakers indicated that interest rates may need to rise again to bring inflation under control. The remarks came after a series of hawkish comments from several Fed officials. 

Philadelphia Fed President Anna Paulson said returning inflation to the 2% target remains a top priority, while noting that policymakers must also consider risks to the labor market. New York Fed President John Williams, speaking in London, similarly indicated that tighter monetary policy could be required.

Markets are currently pricing in a 70.9% chance of a rate hike at the US Federal Reserve's meeting in October, higher than 57.6% a week ago, according to the CME FedWatch. Although gold is traditionally viewed as a hedge against inflation, the yellow metal loses some of its appeal to other interest-bearing assets in a high-interest-rate environment, as it is a non-interest-yielding asset.

End

US$1 = INR 95.84

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

Edited by Akul Nishant Akhoury

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