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Informist, Wednesday, Sept. 3, 2025

 

--MCX Oct gold contract hits fresh record high of INR 106,524 per 10 gm 

--COMEX Dec gold contract hits fresh record high of $3,618.6 per ounce 

 

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India surged to another record high Wednesday, tracking gains in COMEX gold contracts, because of expectations of an interest rate cut by the US Federal Reserve this month. Rising safe-haven appeal of the precious metal amid fresh escalation in the Russia-Ukraine war and concerns over the independence of the Fed also boosted prices.

 

At 1755 IST, the most active October gold contract on the MCX was up 0.5% at INR 106,199 per 10 grams after touching a record high of INR 106,524 per 10 grams. On COMEX, the most active December gold contract was up 0.6% at $3,612.3 per ounce after hitting a new lifetime high of $3,618.6 per ounce. "Broader fiscal worries, coupled with diversification away from the US dollar and equity market pressures, continue to support bullion," Kotak Securities said in a report. "Analysts note that an aggressive tariff stance, political turmoil, and robust ETF (exchange-traded fund) inflows have transformed gold from a short-term hedge into a core strategic holding."

 

After a brief pause in July and August, gold has resumed its rally and has been hitting new record highs every other day. On the domestic exchange, gold prices have risen for 11 consecutive sessions, rising over 7%, aided by weakness in the rupee against the dollar. On COMEX, gold has risen for six straight sessions, surpassing the $3,600 per ounce mark and surging nearly 6% in the same period.

 

Rising bets of a rate cut by the Fed later this month continue to support the rally in gold prices. Moreover, concerns over the central bank's independence after President Donald Trump attempted to fire Fed Governor Lisa Cook and she moved court has raised the safe-haven demand of gold.

 

"The reputation and independence of the Fed are at stake," Carsten Fritsch, commodity analyst at Commerzbank, said in a report. "US Vice President (JD) Vance added fuel to the fire in the dispute with the Fed. In his opinion, the government will not allow monetary policy decisions to be made without the input from the people who were elected to serve the American people." Vance is demanding that the US government should have a say in the monetary policy, which would mark the end of independent monetary policy, Fritsch added.  End

 

US$1 = INR 88.07

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

 

Reported by Ashutosh Pati

Edited by Rajeev Pai

 

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