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Informist, Friday, Mar. 28, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and the COMEX rose on Thursday as increasing concern about a potential global trade war boosted the safe-haven appeal of the precious metal. Earlier in the day, prices of gold soared to fresh record high on the COMEX driven by economic and geopolitical factors.

At 1657 IST, the most-active June GOLD contract on the MCX was up 0.4% at INR 89,680 per 10 grams. The most active June gold contract on COMEX was up 0.7% at $3,113.1 per ounce. The contract hit a lifetime high of $3,124.4 per ounce earlier on Thursday.

US President Donald Trump on 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. He also said higher tariffs could be imposed on the European Union and Canada if they work together to pose economic harm to the US.

"Trump's unpredictable trade policy has been the key driver for gold so far in 2025, with prices up by more than 16% year-to-date, extending its momentum from 2024. We see uncertainty over trade and tariffs, along with central bank buying and inflows into ETF holdings continuing to buoy gold prices," analysts at ING Economics said in a report.

However, the gains in gold prices were restricted by a firm dollar, which makes commodities priced in the greenback expensive for buyers holding other currencies, denting demand. At 1705 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, rose 0.2% at 104.48.

SILVER contracts rose on the MCX and the COMEX, tracking a rise in gold contracts. At 1706 IST, the most-active May silver contract on the MCX was up 0.4% at INR 101,754 per kilogram. The contract hit a lifetime high of INR 102,040 per kg earlier in the day. The same-month contract on the COMEX was 0.9% higher at $35.40 per ounce.

Investors are waiting for the US personal consumption expenditures price index due later in the day for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 89,200–INR 90,300 per 10 gm

--COMEX gold seen at $3,080–$3,140 an ounce

--MCX silver seen at INR 99,600-INR 103,800 per kg

--COMEX silver seen at $34.20-$36.20 an ounce

End

US$1 = INR 85.47

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

Edited by Subhojit Sarkar

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