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Informist, Tuesday, Sept. 16, 2025

 

--MCX Oct gold contract hits new record high of INR 110,548 per 10gm 

--MCX Dec silver contract hits new record high of INR 129,878 per kg 

--COMEX Dec gold contract hits new record high of $3,734.8 per ounce 

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India rose to fresh all-time highs Tuesday, tracking gains in COMEX on expectations of the US Federal Reserve lowering interest rates at its meeting Wednesday, analysts said. On the COMEX, gold futures surged to a new record high, while silver futures are trading near a 14-year high. A fall in the dollar index to an over-10-week low also supported prices.

 

At 1447 IST, the most-active October gold contract on the MCX was 0.3% higher at INR 110,523 per 10 grams, after touching an all-time high of INR 110,548 per 10 grams. On COMEX, the most-active December gold contract was up 0.3% at $3,731.5 per ounce after hitting a record high of $3,734.8 per ounce.

Similarly, the most-active December silver contract on the domestic exchange was 0.3% higher at INR 129,780 per kg, while the same month contract on the COMEX was at $43.15 per ounce, up 0.4%.

The silver contract on MCX had hit a record high of INR 129,878 per kg intraday. 

 

"The market is almost certain the Fed will announce a 25 basis points rate cut on Wednesday, marking the first reduction since December," Kedia Advisory said in a note. "Expectations are growing that the easing cycle could extend into next year," the brokerage said.

 

The CME's Fedwatch tool shows traders fully pricing in a 25-basis-point cut by the Fed next week. Some market participants are betting on the Fed cutting the interest rate by 50 bps. Traders also expect 75 bps of cuts during the rest of the year. Recent disappointing economic data from the US, combined with Fed Chair Jerome Powell's comments at the Jackson Hole symposium last month, have raised expectations of a rate cut in September, triggering a rally in gold, which has hit record highs almost every other day.

 

Concerns around the independence of the Fed have also raised the safe-haven appeal of the precious metal. "A monetary policy influenced by the government would increase longer-term inflation risks, as a look at Turkey today or back at the US in the 1970s shows," Carsten Fritsch, commodity analyst at Commerzbank, said in a report. "As a result, the reputation of the US dollar has been visibly undermined in recent months. Gold is correspondingly more in demand as a safe haven and store of value," Fritsch added.

 

At 1456 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was at 97.02, down 0.3% from the previous close. A weaker dollar makes dollar-denominated commodities such as gold and silver cheaper for those holding other currencies, thereby increasing demand for such metals.

 

"Since the beginning of the year, silver has gained nearly 50%, outperforming even gold. This means that it will likely become increasingly difficult for silver to continue to outperform," Fritsch said. However, silver prices are likely to rise as the gold price continues to increase, Fritsch said.  End

 

US$1 = INR 88.04

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

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

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