More Stories

Informist, Thursday, Mar. 27, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX rose Thursday as fresh tariffs by the US raised concerns about a potential global trade war, lifting the safe-haven appeal of the precious metal. Market sentiment was also lifted as the dollar index retreated from a three-week high.

At 1712 IST, the most-active June GOLD contract on the MCX was up 1.0% at INR 89,250 per 10 grams. The most active June gold contract on COMEX was up 1.2% at $3,090.1 per ounce. The contract hit a lifetime high of $3,095 per ounce earlier Thursday.

US President Donald Trump Wednesday announced a fresh 25% tariff on cars and car parts imported into the US, effective from Apr. 3. "What we're going to be doing is a 25% tariff for all cars that are not made in the United States," Trump said at an event in the Oval Office.

Uncertainty over the announcement of reciprocal tariffs by the US from Apr. 2 and geopolitical tensions also supported prices of the yellow metal. "Gold remains the most reliable hedge against the Trump tariffs," Dow Jones quoted Ipek Ozkardeskaya, senior analyst at Swissquote Bank, as saying.

Prithvi Finmart Director Manoj Jain expects gold prices to surpass the $3,100 per ounce mark on COMEX on Thursday as the US GDP data is due. Market participants expect the US Oct-Dec GDP to rise by 2.3% on year.

A weak dollar index also supported prices of the precious metal as it makes dollar-denominated commodities cheaper for those holding other currencies, thus improving demand. At 1714 IST the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 104.35.

Trump also said larger tariffs could be imposed on the European Union and Canada if they worked together to do economic harm to the US. "If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had," Trump said in a post on Truth Social. 

Goldman Sachs on Wednesday raised its end-2025 gold price forecast to $3,300 per ounce from $3,100, with a target range of $3,250 to $3,520 per ounce, media reports said. The investment bank cited stronger-than-expected exchange-traded fund inflows and sustained central bank demand as key factors behind the revised outlook.

However, the upside to gold prices is restricted as the White House that Russia and Ukraine have separately agreed to a ceasefire in the Black Sea. The US said that the two countries agreed to halve military activities over the Black Sea while ensuring safe navigation.

SILVER contracts rose on the MCX and COMEX, tracking a rise in gold contracts. At 1714 IST, the most-active May silver contract on the MCX was up 1.0% at INR 100,525 per kilogram. The same-month contract on the COMEX was 1.4% higher at $34.70 per ounce.

Investors are waiting for the US GDP data, due later in the day, and the Personal Consumption Expenditures data, due Friday, for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 88,500–INR 89,780 per 10 gm

--COMEX gold seen at $3,055–$3,120 an ounce

--MCX silver seen at INR 97,771-INR 101,761 per kg

--COMEX silver seen at $34.25-$35.35 an ounce

End

US$1 = INR 85.78

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

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.