Record High
Rising US Fed rate cut bets, weak rupee push MCX gold to fresh all-time high
This story was originally published at 21:45 IST on 5 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 5, 2025
--MCX Oct gold contracts hits record high of INR 101,555 per 10 gm
MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India surged to a fresh record high late Tuesday, recouping the day's losses, on growing bets of an interest rate cut by the US Federal Open Market Committee in September and a sharp fall in the rupee against the dollar. The sweeping tariffs imposed by the US and concern over the independence of the US Federal Reserve raised the safe-haven appeal of the precious metal, further supporting prices.
At 2113 IST, the most-active October gold contract on the MCX was 0.3% higher at INR 101,454 per 10 grams, after touching an all-time high of INR 101,555 per 10 grams. On COMEX, the most-active December gold contract was 0.3% higher at $3,437.6 per ounce.
Softer-than-expected jobs data from the US raised expectations of a rate cut by the Fed at its September meeting. US non-farm payrolls rose by 73,000 in July, according to the US Bureau of Labor Statistics. This reading was lower than the market expectation of 110,000, and followed an increase of 14,000 in the revised figure for June. This pointed to a worse-off labour market than earlier thought and raised investors' expectations of a rate cut.
The CME FedWatch tool now shows 89% chance of a rate cut by the FOMC in September, against 63% a week ago. Lower interest rates make the non-interest-bearing precious metal more attractive to investors.
Moreover, the rupee ended at 87.8000 against the dollar Tuesday after President Donald Trump threatened to substantially raise tariffs on India for its continued procurement of crude oil from Russia. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees.
"...gold is likely to benefit from the prospect that pressure on the central bank to cut interest rates will increase in the near future," Thu Lan Nguyen, head of FX and commodity research at Commerzbank, said in a report. "Fed Governor Adriana Kugler announced on Friday that she will prematurely step down from her position as a board member. She was originally set to leave in January. US President Trump has already announced that he will name a candidate for her succession this week. Who he nominates could provide an important indication of how strongly he intends to influence the Fed," Nguyen added. End
US$1 = INR 87.80
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Rajeev Pai
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.
To read more please subscribe
Share this Story:
