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Informist, Monday, Sept. 29, 2025

 

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--COMEX December gold contract hits new record high of $3,837.8 per ounce 
--COMEX January silver contract hits new record high of $47.61 per ounce 
--MCX October gold contract hits new record high of INR 114,992 per 10 gm 
--MCX December gold contract hits new record high of INR 115,939 per 10 gm 
--MCX December silver contract hits new record high of INR 144,179 per kg 
--MCX March silver contract hits new record high of INR 145,817 per kg 

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India rose to fresh all-time highs, tracking high prices on COMEX amid hope of rate cuts by the US Federal Reserve that would enhance the allure of the non-interest bearing precious metal. Market participants are also pricing in two more interest rate cuts by the US Fed this year.

 

According to the CME FedWatch tool, 89.3% of the traders are pricing in a 25-basis-point rate cut in October and 10.7% anticipate the rates to remain unchanged at 4.00-4.25%. Lower interest rates increase the appeal of non-interest-yielding precious metals.

 

The newly elected US Federal Reserve Governor Stephen Miran on Sept. 22 said he wants central bank interest rates to be roughly 2 percentage points lower, arguing that the current level is too high and poses risks to the US economy. "Monetary policy is well into restrictive territory," Miran said in a speech at the Economic Club of New York. "Leaving short-term interest rates roughly 2 percentage points too tight risks unnecessary layoffs and higher unemployment."

 

Additionally, persistent concerns over US Treasury debt issuance and potential risks to the Fed's autonomy fueled global demand for gold, prompting the People's Bank of China to continue accumulating the bullion and offer custody services to foreign holders, according to Kedia Advisory.

 

In terms of silver, industrial consumption continued to be robust, led by solar, electric vehicles, and electronics fabrication, keeping usage above 700 million ounces annually, according to Kedia Advisory. However, production growth was constrained as silver is primarily mined as a byproduct of copper, lead, and zinc, leaving output near 844 million ounces in 2025 and maintaining a large structural deficit, it said.

 

Meanwhile, investors are also monitoring the risk of a potential US government shutdown, as congressional Democrats and Republicans remain at an impasse over federal funding. A shutdown could potentially affect financial markets and delaying key economic data releases.  

 

On the trade front, US President Donald Trump last week announced a new round of tariffs targeting imported drugs, trucks, and furniture, set to take effect Wednesday, adding further uncertainty to the economic outlook.

 

Along with the persisting hopes of a rate cut by the US Fed, a weak rupee against the dollar also supported domestic prices of the bullion, Kedia Advisory said. The domestic currency fell to 88.71 a dollar earlier in the day.

 

At 1045 IST, the most-active October gold contract on the MCX was 1% higher at INR 114,889 per 10 grams, after touching an all-time high of INR 114,992 per 10 grams. The December contract rose to a record high of INR 115,939 per 10 gm earlier in the day. At 1049 IST, the December contract of gold was 0.8% higher at 115,780 per 10 gm.

 

At 1050 IST, the most-active December silver contract on the MCX was 0.8% higher from the previous close at INR 143,086 per kilogram, after touching an all-time high of 144,179 per kg. The most-active March silver contract was 1% higher from the previous close at INR 144,590 per kilogram, after touching an all-time high of INR 145,817 per kg. 

 

At 1054 IST, the most-active December gold contract on COMEX was up 0.7% at $3,835 per ounce, after touching a record high of $3,837.8 per ounce. The most-active January silver contract on COMEX was up nearly 1% at $47.32 per ounce, after touching a record high of $47.61 per ounce earlier in the day.  End

 

US$1 = INR 88.73

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

 

Reported by Taniva Singha Roy

Edited by Tanima Banerjee

 

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