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Informist, Monday, Mar. 17, 2025

By J. Navya Sruthi

MUMBAI – Futures contracts of gold and silver fell on the Multi Commodity Exchange of India on Monday as the rupee rose against the dollar. On the COMEX, prices of the precious metals were down due to profit booking, analysts said. However, prices of both the metals are expected to rise in the short-term due to prevailing global uncertainties, analysts said.

The rupee appreciated by 0.23% and closed at a three-week high of 86.80 against the dollar as traders sold the greenback to cut their long dollar positions amid sustained weakness in the currency. When the rupee appreciates against the dollar, it makes imports cheaper for Indian buyers, which weighs on gold prices.

At 1840 IST, the most-active April GOLD contract on the MCX was down 0.2% at INR 87,837 per 10 grams. The most-active April gold contract on the COMEX was down 0.2% at $2,995 per ounce. At 1842 IST, the most-active May contract of SILVER on the MCX was down 0.6% at INR 100,140 per kg. The same-month contract on COMEX was down 0.8% at $34.16 per ounce.

On Friday, gold prices hit an all-time new high of $3,017.1 per ounce on the COMEX and INR 88,310 per gm on the MCX due to safe haven demand. Tracking firm gold prices, silver prices also rose to a record high of INR 101,999 per kg on the domestic exchange.

Although prices of both the precious metals fell on Monday, analysts expect prices to be firm after the consolidation phase. Kotak Securities said in a note that gold futures on COMEX continued to trade above $3,000 per ounce on Monday, driven by robust safe-haven demand amidst escalating geopolitical tensions. "Continued US strikes against Yemen's Houthis, coupled with reported Russian interceptions of Ukrainian UAVs, heightened market uncertainty."

"From a technical perspective, gold's recent breakout past $2,930 signals continued bullish momentum. However, with the Relative Strength Index nearing overbought territory, a brief consolidation or pullback may occur. Key support lies around $2,956, with deeper corrections possibly testing $2,930," Kedia Advisory said in a note.

Investors will take cues from the US Federal Open Market Committee's rate decision this week, analysts said.

Outlook for the rest of the session:

--MCX gold seen at INR 86,550–INR 88,700 per 10 gm

--COMEX gold seen at $2,948.3–$3,009.6 an ounce

--MCX silver seen at INR 98,450-INR 100,900 per kg

--COMEX silver seen at $32.90-$34.21 an ounce

End

US$1 = INR 86.80

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

Edited by Ashish Shirke

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