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Informist, Monday, Apr. 7, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX as a continued rout in equity markets and a sell-off in cryptocurrencies boosted the metal's safe-haven demand. Positive momentum seen in the precious metal was further supported by continued purchases by the People's Bank of China.

The People's Bank of China bought 90,000 troy ounces in March, its fifth successive month of buying, according to a report by Bloomberg.

"Sentiment remained cautious with investors looking for further clarity from the US on its next course of action, especially amid escalating trade tensions," Jateen Trivedi, vice-president and research analyst at LKP Securities, said in a note. "The upcoming US CPI data is expected to play a crucial role in shaping rate cut expectations, which could influence gold's direction globally," he said.

At 1845 IST, the most-active June GOLD contract on the MCX was up 0.3% at INR 88,354 per 10 grams. The most-active June gold contract on the COMEX was up 0.3% at $3,043.20 per ounce. The highest call open interest was at INR 90,000 strike price, indicating a bullish view. The highest put open interest was at INR 87,000 strike for the Apr. 30 contract.

However, the upside was restricted due to outflow in gold exchange-traded funds and a rebound in the dollar which makes commodities priced in the greenback expensive for holders of other currencies. At 1845 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.3% at 102.92.

On Friday, gold holdings with SPDR Gold Trust, the world's largest gold-backed ETF, fell by 3.44 tonnes to 932.80 tonnes. The fund has a market value of $91.57 billion. On the National Stock Exchange, the total value of gold ETFs traded on Monday was INR 7.63 billion, up from INR 3.81 billion on Friday.

SILVER contracts edged higher taking cues from the COMEX because of short-covering after a sharp sell-off on Friday. At 1850 IST, the most-active May contract on the MCX was up 2.3% at INR 89,236 per kg. The same-month contract on the COMEX was 3% higher at $30.11 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 90,000-INR 88,000 strikes 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 up 119 points at 20369 points. The June and August gold contracts on the MCX recorded turnovers of INR 74.59 billion and INR 7.61 billion, respectively. The May and July silver contracts saw turnovers of INR 64.84 billion and INR 10.31 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 100.61 Monday, indicating that silver had outperformed gold. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 102.58 on Friday.

Outlook for the rest of the session:

--MCX gold seen at INR 87,797–INR 89,166 per 10 gm

--COMEX gold seen at $3,005.80–$3,133.30 an ounce

--MCX silver seen at INR 88,207-INR 90,733 per kg

--COMEX silver seen at $28.41-$31.34 an ounce

End

US$1 = INR 85.83

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

Edited by Nishant Maher

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