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Informist, Tuesday, Sept. 9, 2025

 

--COMEX Dec gold contract hits new record high of $3,715.2 per ounce 

--MCX Oct gold contract hits new record high of INR 109,840 per 10 gm 

 

MUMBAI – Gold contracts on the Multi Commodity Exchange of India and the COMEX surged to fresh record highs Tuesday because of rising expectations of multiple interest rate cuts by the US Federal Reserve this year. Market participants are now waiting for the US inflation data, due Thursday, to gauge the quantum of rate cuts likely this year. On COMEX, gold prices soared past $3,700 per ounce.

 

At 2046 IST, the most active December GOLD contract on COMEX was 0.1% higher at $3,682.1 per ounce, after hitting a record high of $3,715.2 per ounce earlier in the day. The most active October gold contract on the MCX was up 0.1% at INR 108,649 per 10 grams, after rising to an all-time high of INR 109,840 per 10 grams.

 

"...managed money accounts now hold 47% of their total commodity exposure in gold and 7% in silver. The heavy concentration in gold underscores the strength of a rally that has persisted for months, with only shallow corrections so far—insufficient to trigger broad long liquidation or force traders to await a fresh entry signal," Ole Hansen, head of commodity strategy at Saxo Bank said in a note.

 

Disappointing recent economic data from the US and Fed Chair Jerome Powell's comments at the Jackson Hole symposium last month have raised expectations of a rate cut in September, triggering the rally in gold where prices are hitting record highs almost every other day. The non-farm payrolls data released Friday showed the US only added 22,000 jobs in August, well below the consensus estimate of 75,000 job additions. The unemployment rate rose to 4.3% from 4.2% in July.

 

"The situation on the labour market has thus deteriorated significantly within a short period of time. A 25 basis point interest rate cut by the US Federal Reserve next week is now fully priced in," Thu Lan Nguyen, head of foreign exchange and commodity research at Commerzbank, said in a report. "Some even see the possibility of a larger move," Nguyen said.

 

Market sentiment could be dampened significantly if US inflation data show stronger-than-expected rise in prices, Nguyen added. "...the inflation figures have great potential for a sharp market correction if they show a significantly stronger price surge. If, on the other hand, they turn out to be surprisingly weak, the market is likely to bet more heavily on a 50-basis-point interest rate hike, pushing gold further upward."  End

 

US$1 = INR 88.10

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

 

Reported by Ashutosh Pati

Edited by Deepshikha Bhardwaj

 

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