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Informist, Friday, Apr. 25, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and the COMEX as the report suggested China was considering halting import tariffs on some products from the US. The outflow in gold exchange-traded funds and a recovery in the dollar also weighed on the precious metal's prices.

"The recent downside (in gold) was triggered by growing expectations of a possible trade thaw between the US and China. Notably, China signalled a softer stance by reducing the 145% tariff on select US products, hinting at a potential willingness to engage in negotiations," said Jateen Trivedi, vice-president and research analyst at LKP Securities, in a note.

"This shift in tone has reduced the safe-haven premium on gold," Trivedi said.

At 2015 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was up 0.3% at 99.59 on hope of a de-escalation in trade tensions between the US and China. A stronger dollar makes dollar-denominated precious commodities more expensive for those holding other currencies, dulling demand.

On Thursday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, fell by 0.58 tonne to 948.56 tonnes. The fund has a market value of $101.06 billion. On the National Stock Exchange, the total value of gold ETFs traded on Friday was INR 2.38 billion, down from INR 3 billion on Thursday.

At 2015 IST, the most active June GOLD contract on the MCX was down 1.4% at INR 94,600 per 10 grams. The most active June gold contract on the COMEX was 1.7% lower at $3,291.80 per ounce. The highest call open interest on gold was at the INR 95,000-INR 98,000 strikes, indicating a bullish view. The highest put open interest was at the INR 90,000 strike for the Apr. 30 contract.

The price of 10 gm 24-carat gold in Mumbai was INR 95,631, along with 3% goods and services tax, while 22-carat 10 gm stood at INR 87,598 plus GST. The price of 18-carat gold was quoted at INR 71,723 plus GST in the retail market.

SILVER contracts traded lower, taking cues from COMEX, and weak trends in gold and industrial metals. At 2023 IST, the most active May contract on the MCX fell 1.4% to INR 96,161 per kg, while the same-month contract on COMEX was down 1.9% at $32.87 per ounce.

The MCX Bulldex, which tracks the real-time performance of gold and silver futures on the MCX, was down by 308 points at 21799 points. The turnover for the June and August gold contracts stood at INR 112.89 billion and INR 10.1 billion, respectively. The May and July silver contracts saw turnovers of INR 23.12 billion and INR 18.44 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 99.54 on Friday, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 99.70 on Thursday.

Outlook for the rest of the session:

--MCX gold seen at INR 93,860–INR 95,800 per 10 gm

--COMEX gold seen at $3,270.0–$3,332.0 an ounce

--MCX silver seen at INR 95,050-INR 97,460 per kg

--COMEX silver seen at $32.18-$33.67 an ounce

End

US$1 = INR 85.45

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

Edited by Akul Nishant Akhoury

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