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Informist, Wednesday, Sept. 3, 2025

 

--MCX Oct gold contract hits new record high of INR 106,199 per 10 gm

 

NEW DELHI – Futures contracts of gold on the Multi Commodity Exchange of India surged to a fresh record high, tracking gains in COMEX gold prices. International gold futures rose more on Wednesday due to growing expectations of a US Federal Reserve interest rate cut this month.

 

At 1044 IST, the most active October gold contract on the MCX was up 0.2% at INR 106,047 per 10 grams, after touching the record high of INR 106,199 per 10 grams. On COMEX, the most active December gold contract was up 0.2% at $3,600.7 per ounce after hitting a new lifetime high of $3,616.9 per ounce. 

 

Gold prices have been rising due to increased safe-haven demand amid geopolitical tensions, tariff uncertainties, and trade war risks. In addition, US President Donald Trump has been exerting political pressure on the Fed to cut rates. Trump last month attempted to fire Fed Governor Lisa Cook, raising concerns over the central bank's independence. 

 

According to the CME FedWatch tool, traders are pricing in an 89.6% probability of a 25-basis-point rate cut by the Fed, higher than 88.7% last week. Lower rates increase the appeal of the non-interest-yielding precious metal. 

 

"Technically, gold is in fresh buying...Support is seen at INR 104,925 per 10 grams, with further downside risk toward INR 104,065 per 10 grams. Resistance is seen at INR 106,280 per 10 grams, and a break above could push prices toward INR 106,775 per 10 grams," Kedia Advisory said in a note. 

 

"Gold could hit the $3,600 to $3,900 per ounce range in the coming months, if spot prices sustain the breach above the $3,500 zone," Dow Jones quoted Philip Nova's Priyanka Sachdeva say in a note.

 

"The gold market is entering a seasonally strong period for consumption, coupled with expectations for a rate cut at the September Fed meeting. We continue to expect new record highs," Reuters quoted Suki Cooper, precious metals analyst at Standard Chartered Bank, as saying. For further cues, the market awaits US initial jobless claims data, due on Thursday. End

 

US$1 = INR 88.03

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

 

Reported by Afra Abubacker

Edited by Deepshikha Bhardwaj

 

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