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Informist, Friday, Dec. 12, 2025

--MCX Feb gold contract hits fresh record high of INR 134,249 per 10 gm

--MCX March silver contract hits new record high of INR 200,362 per kg

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India rose to record highs on Friday due to a sharp fall in the rupee against the dollar. Gold contracts on the domestic bourse also rose tracking gains on COMEX after the US Federal Reserve lowered interest rates by 25 basis points to 3.50-3.75% on Thursday.

At 1548 IST, the most active February contract of gold on the MCX was up 1.3% at INR 134,246 per 10 grams after touching a new record high of INR 134,249 per 10 grams. The most active December gold contract on COMEX was 0.9% higher at $4,350.2 per ounce. Similarly, the most active March silver contract on the domestic bourse rose to a fresh all-time high of INR 200,362 per kg and is currently trading at INR 199,238 per kg, up 0.2% from the previous close.

The rupee ended at a record closing low against the dollar for the second consecutive trading day on Friday. After touching a record low of 90.5600 a dollar during the day, the rupee settled at 90.4150 Friday, lower than 90.3675 on Thursday. When the rupee depreciates against the dollar, prices of gold and silver in the domestic market adjust as the precious metals are priced in rupees.

Silver prices drew additional support from a tight physical market. "According to Bloomberg, silver ETFs (exchange-traded funds) have recorded inflows of almost 130 million ounces this year, which corresponds to around 13% of the annual global silver supply," Barbara Lambrecht, commodity analyst at Commerzbank said in a report. "This is significantly exacerbating the situation on the already undersupplied silver market. Therefore, the price increase appears to be fundamentally supported, but the extent of it undoubtedly calls for caution," Lambrecht added.

Meanwhile, the US Federal Reserve's decision drew three dissents: Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid argued that the policy rate should be kept unchanged, while Fed Governor Stephen Miran again called for a larger 50-bps reduction, Informist had reported. The summary of economic projections showed only one 25-bps rate reduction in the policy rate in 2026, as per the median of expectations of Fed officials. Policymakers raised the estimate for GDP growth in 2026 to 2.3% from 1.8% and maintained expectations of a 4.4% unemployment rate at the end of next year.

At the post-policy press briefing, Fed Chairman Jerome Powell said the Fed's interest rate policy was well positioned to respond to what lies ahead for the economy, declining to provide guidance on another interest rate cut in the near future.

Gold's medium term upside is towards INR 150,000 per 10 grams, while that of silver is towards INR 220,000 per kg, according to Anindya Banerjee, head currency and commodity at Kotak Securities.  End

US$1 = INR 90.4150

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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