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Informist, Tuesday, Apr. 29, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX fell Tuesday as the strengthening dollar exerted downward pressure on yellow metal prices, making it more expensive for non-dollar denominated buyers. The sentiment was also dampened by weak safe-haven demand as tensions in US-China trade relations seemed to de-escalate.

Also, weak retail demand in top consumer China weighed on the precious metal prices as money managers trimmed their bullish positions.

At 1855 IST, the dollar index, which measures the strength in the greenback against a basket of major currencies, was up 0.2% at 99.08. Investors now shift their focus to US non-farm payrolls data, due Friday. Analysts polled by Dow Jones estimated the payrolls to come in at 130,000 in April from 228,000 in March.

Money managers reduced their net long position in COMEX gold by 11,197 lots to 125,722 lots as of Apr. 22. This was the fifth straight week of fall and the fewest bullish bets since the week ended Feb. 27, 2024.

The China Gold Association said on Monday that gold demand in the country had dropped 6% on year to 290.5 tonnes in Jan-Mar. The jewellery demand declined 27% on year to 134.5 tonnes in the March quarter because of higher gold prices in China.

At 1900 IST, the most active June GOLD contract on the MCX was down 0.6% at INR 95,400 per 10 grams. The most active June gold contract on the COMEX was 0.7% lower at $3,354.10 per ounce. The highest call open interest on gold was at the INR 96,000-INR 97,000 strikes, indicating a bullish view. The highest put open interest was at the INR 95,000-INR 94,000 strike for the Apr. 30 contract.

The price of 24-carat gold in Mumbai was INR 96,011 per 10 gm, along with 3% goods and services tax, while 22-carat 10 gm gold was priced at INR 87,946, plus GST. The price of 18-carat gold was quoted at INR 72,006, plus GST, in the retail market.

Investors will take further cues from the World Gold Council's Jan-Mar gold demand trend report due later in the day.

On Monday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed exchange traded fund, remained steady at 946.27 tonnes. The fund has a market value of $100.26 billion. On the National Stock Exchange, the total value of gold ETFs traded on Tuesday was INR 2.74 billion, up from INR 2.60 billion on Monday.

SILVER contracts traded higher, taking cues from COMEX, and tracking a firm trend in industrial metals. At 1910 IST, the most active May contract on the MCX was up 1.1% at INR 97,484 per kg, while the same-month contract on COMEX was up 1.2% at $33.41 per ounce.

The MCX Bulldex, which tracks the real-time performance of gold and silver futures on the MCX, was up 113 points at 22016 points. The turnover for the June and August gold contracts stood at INR 71.98 billion and INR 4.09 billion, respectively. The May and July silver contracts saw turnovers of INR 29.73 billion and INR 7.89 billion, respectively.

The spot gold-silver ratio, also known as the Mint ratio, fell to 99.13 on Tuesday, indicating that gold had underperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 100.85 on Monday.

Outlook for rest of the session:

--MCX gold seen at INR 94,635–INR 96,045 per 10 gm

--COMEX gold seen at $3,320.0–$3,370.0 an ounce

--MCX silver seen at INR 96,667-INR 98,033 per kg

--COMEX silver seen at $33.0-$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 Tanima Banerjee

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