MCX October gold hits record high on trade tensions, hope of Fed rate cut
This story was originally published at 10:43 IST on 8 August 2025
Register to read our real-time news.Informist, Friday, Aug. 8, 2025
--MCX October gold contract rises more, hits record high of INR 102,191/10 gm
MUMBAI – Futures contracts of gold continued to rise and hit a fresh record high on the Multi Commodity Exchange of India on Friday amid escalating trade tensions and growing expectations of interest rate cuts in the US. Gold is seen as a safe-haven asset against geopolitical tensions and economic uncertainties.
At 1000 IST, the most-active October gold contract on the MCX was 0.6% higher at INR 102,129 per 10 grams, after touching an all-time high of INR 102,191 per 10 grams earlier in the day. On COMEX, the most-active December gold contract was 1% higher at $3,488.5 per ounce, close to the record high of $3,539.3 per ounce.
US President Donald Trump said trade negotiations with India would remain on hold until the ongoing tariff dispute is resolved. "No, not until we get it resolved," Trump said at the Oval Office to a question on whether he expects increased trade negotiations with India since he announced 50% tariffs on the country. On Wednesay, Trump doubled the tariffs on Indian imports to 50% for buying Russian energy.
"Gold's price resilience could be flagging hidden market risks," Dow Jones quoted State Street Investment Management analysts as saying in a note. The precious metal is down just 3% from all-time highs, despite some recovery in equities since April and a decline in asset market volatility, they added.
"Risks still seem skewed towards higher-versus-lower gold prices into year-end," they added. Further depreciation in dollar is likely to support a gold rally to the bull scenario of $3,500-$3,900 $3,500-$3,900 per ounce, they added.
On Indian bourse, gold may trade in the range of INR 101,500-INR 103,000 with a bullish trend, SMC Global Securities said. Gold futures jumped after the US imposed tariffs on import of 1-kilogram gold bars, it added. According to the US Customs Border Protection letter, accessed by the Financial Times, one-kilogram and 100-ounce gold bars, should be classified under a customs code subject to levies.
In addition, weak US labor data and dovish comments by Minneapolis Fed President Neel Kashkari reinforced expectations of interest rate cuts, with the CME FedWatch showing a 91.4% chance of a rate cut in September. Initial claims for unemployment benefits rose 7,000 to a seasonally adjusted 226,000 for the week ended Saturday, the Labor Department said on Thursday. Economists polled by Reuters had forecast 221,000 claims for the week. Lower interest rate bolster the appeal of the non-interest-bearing precious metal. End
US$1 = INR 87.61
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Afra Abubacker
Edited by Avishek Dutta
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:
