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Informist, Thursday, Apr. 24, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX Thursday because of a short-covering after a sharp fall on Wednesday. The positive momentum was also lifted by safe-haven demand, inflows in gold exchange-traded funds, and weakness in the dollar.

The ongoing US-China trade tensions and increasing recessionary risks bolster gold's safe-haven appeal, supported by consistent central bank demand, Kotak Securities said in a note.

At 1755 IST, the most active June GOLD contract on the MCX was up 1.3% at INR 95,952 per 10 grams. The most active June gold contract on the COMEX was 1.7% higher at $3,350.80 per ounce. The highest call open interest on gold was at the INR 95,000-INR 100,000 strikes, indicating a bullish view. The highest put open interest was at the INR 95,000-INR 90,000 strikes for the Apr. 30 contract.

"Although recession worries have subsided, the global economy has already suffered significant harm, and rebuilding trust in the US as a dependable trade partner will take time," Renisha Chainani, research head, Augmont Goldtech Pvt. Ltd, said in a report. In this context, gold is projected to be highly supported, she said.

On Wednesday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, rose by 1.44 tonnes to 949.14 tonnes. The fund has a market value of $99.55 billion. On the National Stock Exchange, the total value of gold ETFs traded on Thursday was INR 3.00 billion, down from INR 5.75 billion on Wednesday.

At 1755 IST, the dollar index, which measures the strength of the greenback against a basket of major currencies, was down 0.4% at 99.43. A weaker greenback makes dollar-denominated commodities cheaper for those holding other currencies, thus improving demand.

SILVER contracts traded lower, taking cues from COMEX, and weak trends in industrial metals. At 1800 IST, the most active May contract on the MCX fell 0.1% to INR 97,707 per kg, while the same-month contract on COMEX was down 0.3% at $33.45 per ounce.

The MCX Bulldex, which tracks the real-time performance of gold and silver futures on the MCX, was up 195 points at 22139 points. The turnover for the June and August gold contracts stood at INR 72.71 billion and INR 7.67 billion, respectively. The May and July silver contracts saw turnovers of INR 15.90 billion and INR 8.82 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, rose to 99.65 on Thursday, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 97.93 on Wednesday.

Outlook for the rest of the session:

--MCX gold seen at INR 94,953–INR 96,539 per 10 gm

--COMEX gold seen at $3,270.0–$3,400.0 an ounce

--MCX silver seen at INR 96,576-INR 98,072 per kg

--COMEX silver seen at $33.23-$33.70 an ounce

End

US$1 = INR 85.26

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

Edited by Deepshikha Bhardwaj

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