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Informist, Tuesday, Sept. 30, 2025

--COMEX December gold contract hits new record high of $3,898 per ounce

--MCX December gold contract hits new record high of INR 117,697 per 10 gm

--MCX December silver contract hits new record high of INR 144,310 per kg

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India rose to fresh all-time highs, tracking prices on the COMEX amid concerns over a potential US government shutdown and expectations of further rate cuts by the Federal Reserve.

US President Donald Trump and his Democratic opponents appeared to make little progress at a White House meeting aimed at heading off a government shutdown that could disrupt a wide range of services as soon as Wednesday, Reuters reported. These include the likelihood of a shutdown and possible delays in key economic data, including the September non-farm payrolls report.

"The looming government shutdown creates a haze of uncertainty over the market, which has served to accelerate gold's gains," Reuters quoted KCM Trade Chief Market Analyst Tim Waterer as saying. "The $4,000 level now seems a viable year-end target for gold whilst market dynamics such as lower interest rates and ongoing geopolitical hotspots keep working in favour of the precious metal."

A wave of new US tariffs added to market jitters, leading to a rise in safe haven demand for both precious metals. On Monday, Trump vowed to impose a 100% tariff on all movies made outside the US. This follows last week's announcement of new tariffs set to take effect on Oct. 1, including a 100% tariff on branded or patented pharmaceutical products made overseas, a 50% tariff on kitchen cabinets and bathroom vanities, a 30% tariff on upholstered furniture, and a 25% tariff on heavy trucks imported into the US. 

Prices also rose on hopes of a rate cut by the US Federal Reserve in October. According to the CME FedWatch tool, 89.3% of the traders are pricing in a 25-basis-point rate cut next month 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. 

At 1156 IST, the most active December gold contract on the MCX was 1.1% higher at INR 117,595 per 10 grams, after touching an all-time high of INR 117,697 per 10 grams. The most active December silver contract on the MCX was 0.6% higher from the previous close at INR 144,080 per kilogram, after touching an all-time high of 144,310 per kg.  

At 1156 IST, the most active December gold contract on COMEX was up 1% at $3,892 per ounce, after touching a record high of $3,898 per ounce. 

Gold and silver could extend their uptrend on cyclical and structural tailwinds, Dow Jones cited Citi Research's Maximillian J. Layton as saying in a report. Structural tailwinds include worries over US debt, the dollar's reserve status and the Fed's independence, the report said. Cyclical tailwinds include continued weakness in the US labour market, tariff-impact concerns and broader global growth fears, the report cited Layton as saying. Silver remains in a sustained physical deficit amid strong demand from the solar photovoltaic market, it said.  End

US$1 = INR 88.79

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

Reported by Shreya Shetty

Edited by Deepshikha Bhardwaj 

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