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Informist, Tuesday, Sept. 16, 2025

--MCX Oct gold contract hits new record high of INR 110,666 per 10gm 

--COMEX Dec gold contract hits new record high of $3,737.6 per ounce 

--MCX Dec silver contract hits new record high of INR 130,285 per kg 

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

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. They will also closely track the FOMC's projections or 'dot plot'. 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.

At 1809 IST, the most-active October gold contract on the MCX was 0.2% higher at INR 110,431 per 10 grams, after touching an all-time high of INR 110,666 per 10 grams. On COMEX, the most-active December gold contract was up 0.3% at $3,728.5 per ounce after hitting a record high of $3,737.6 per ounce. "The rally was supported by the US dollar falling to a 10-week low, while a string of weak labour data and muted inflation readings bolstered expectations of additional cuts this year," Kotak Securities said in a report.

Similarly, the most-active December silver contract on the domestic exchange was 0.5% higher at INR 130,074 per kg, while the same month contract on the COMEX was at $43.25 per ounce, up 0.5%. The silver contract on MCX hit a record high of INR 130,285 per kg earlier in the day.

At 1813 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was at 97.12, down 0.2% 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.

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.  End

US$1 = INR 88.05

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

Reported by Ashutosh Pati

Edited by Avishek Dutta

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