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Informist, Tuesday, Feb. 25, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose marginally on the Multi Commodity Exchange of India on Tuesday because of the weakness in the rupee against the dollar even as contracts on COMEX fell due to profit-booking. The positive sentiment was further supported by continued inflows in gold exchange-traded funds and safe-haven demand.

The rupee fell 0.6% against the dollar to close at 87.21 because of selling by foreign funds and month-end demand from importers. A weaker rupee makes dollar-denominated commodities expensive for domestic buyers.

On Monday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, rose by 3.15 tonnes to 907.53 tonnes, the fifth straight day of inflows. The fund has a market value of $85.53 billion.

At 1905 IST, the most active April GOLD contract on the MCX was up 0.1% at INR 86,274 per 10 grams. The most active April gold contract on COMEX was down 0.7% at $2,943.90 per ounce. The highest call open interest was at INR 86,000-INR 87,000 strike prices, indicating a bullish view. The highest put open interest was at INR 85,000 strike for the Feb. 28 contract.

Market players await the release of the US Conference Board consumer sentiment survey and Richmond manufacturing index to be released later in the day for further cues.

SILVER contracts rose, despite weak cues from COMEX, on rupee weakness. At 1905 IST, the most-active March contract on the MCX was up 0.2% at INR 95,248 per kg. The same-month contract on COMEX was down 0.5% at $32.45 per ounce. On the options front, the highest call open interest was at the INR 100,000 strike price. The highest put open interest was at INR 95,000 strike for the Apr. 24 expiry contract.

The MCX Bulldex, an index that tracks the real-time performance of gold and silver futures on the MCX, was down 27 points at 20510 points. The April and June gold contracts on the MCX recorded turnovers of INR 53.58 billion and INR 2.68 billion, respectively. The March and May silver contracts saw a turnover of INR 23.11 billion and INR 21.59 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, rose to 91.49 Tuesday, indicating that gold outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 90.45 on Monday.

Outlook for the rest of the session:

--MCX gold seen at INR 85,988–INR 86,700 per 10 gm

--COMEX gold seen at $2,922.70–$2,983.0 an ounce

--MCX silver seen at INR 94,895-INR 95,500 per kg

--COMEX silver seen at $32.35-$33.10 an ounce

End

US$1 = INR 87.21

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

Edited by Saji George Titus

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