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Informist, Tuesday, Oct. 14, 2025

--COMEX Dec gold contract hits fresh record high of $4,173.7 per ounce 

--MCX Dec gold contract hits fresh record high of INR 126,440 per 10 gm 

--MCX Dec silver contract hits fresh record high of INR 160,830 per kg 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India hit fresh all-time highs, tracking prices of gold on the COMEX due to growing expectations of further rate cuts by the Federal Reserve and continuation of the US government shutdown. Lingering trade tensions between the US and China also supported safe-haven demand for precious metals.

The US government shutdown, which entered its 14th day on Tuesday, led to safe-haven demand for both precious metals. The shutdown is starting to impact the nation's economy, Reuters quoted US Treasury Secretary Scott Bessent as saying on Monday. "This is getting serious. It's starting to affect the real economy," the report quoted Bessent as telling Fox Business Network.

Meanwhile, 96.7% of traders are pricing in a 25-basis-point rate cut by the Fed this month, and 3.3% anticipate rates to remain unchanged at 4.00-4.25%, according to the CME Fedwatch tool. Gold prices typically rise during times of economic and geopolitical uncertainties and low-interest-rate scenarios.

New fees on US ships arriving at Chinese ports came into effect on Tuesday, the BBC reported. This comes in retaliation as the US is set to charge fees on Chinese ships arriving at its ports from Oct. 14. Beijing announced the levies last week alongside moves to tighten controls on its rare earth exports, to which US President Donald Trump responded with the threat of additional 100% tariff on China. However, Bessent said on Monday that Trump and China's President Xi Jinping were still expected to meet in South Korea in late October as they try to de-escalate trade tensions, the report said. 

Prices of silver are also being supported by tightening supply in London, Kedia Advisory said in a note. Demand from both industrial and investment sectors – particularly for renewable energy applications – has kept consumption high, with a supply deficit projected for the fifth consecutive year in 2025, they said. 
 

At 0929 IST, the most active December gold contract on the MCX hit a high of INR 126,652 per 10 grams, after touching an all-time high of INR 126,440 per 10 grams earlier in the day. The most active December silver contract also hit another high of INR 162,057 per kilogram, after touching an all-time high of 160,830 per kg.  

At 0929 IST, the most active December gold contract on COMEX also hit a high of $4,177.3 per ounce, after touching a record high of $4,173.7 per ounce earlier in the day. 

A BofA Global Research team expects further upside in 2026, with gold and silver potentially rising to $5,000 per ounce and $65 per ounce, respectively, Dow Jones reported. "White House's unorthodox policy framework should remain supportive for gold," Dow Jones cited the team as saying in a research report, citing drivers including fiscal deficits, rising debt, and a push to cut rates.  End

US$1 = INR 88.77

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

Reported by Shreya Shetty

Edited by Avishek Dutta

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