More Stories

Informist, Friday, Aug. 29, 2025

 

--MCX Oct gold contracts hits fresh record high of INR 102,308 per 10 gm 

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India surged to a fresh record high Friday because of a sharp fall in the rupee against the dollar. Market sentiment remains buoyed by rising safe haven appeal of the precious metal amid expectations of a rate cut by the US Federal Open Market Committee and concerns over the independence of the US Federal Reserve.

 

At 1227 IST, the most-active October gold contract on the MCX was 0.2% higher at INR 102,259 per 10 grams, after touching an all-time high of INR 102,308 per 10 grams earlier Friday. On COMEX, the most-active December gold contract was trading slightly lower at $3,469.6 per ounce after a sharp rise in prices in the previous session.

 

Gold contracts have risen for eight consecutive sessions on the domestic exchange, despite some volatility on COMEX, because of weakness in the rupee. At 1234 IST, the rupee was 0.3% lower at 87.9200 against the dollar. Since Aug. 20, the domestic currency has fallen over 0.9%. In case the rupee convincingly falls below the 87.80 mark, dealers expect it to test the psychologically-crucial 88-per-dollar mark, Informist reported earlier in the day. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees.

 

Meanwhile, US Federal Reserve Governor Lisa Cook has filed a lawsuit against US President Donald Trump, stating that the president had no right to fire her. The legal battle could challenge established norms on the independence of the US Federal Reserve. The lawsuit also said Trump violated Cook's right to due process because he fired her without notice or a hearing.

 

"Haven demand (for gold) received a boost after Fed governor Lisa Cook filed a lawsuit challenging Trump's attempt to remove her," Daniel Hynes, senior commodity strategist at ANZ Research, said in a note.

 

"Over the next few months, we anticipate gold prices will remain elevated and only rise further if the US Fed lowers interest rates," BMI, a unit of Fitch Solutions, said in a report. "In the event that the US Fed holds interest rates steady, gold prices would likely suffer a setback down closer to $3,000/oz."

 

According to Kedia Advisory, the October gold contract on MCX will move in the range of INR 101,800 and INR 102,600 in the short term.  End

 

US$1 = INR 88.09

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

 

Reported by Ashutosh Pati

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.