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Informist, Friday, May 9, 2025

By Sandeep Sinha

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX Friday because of a weaker dollar and continued inflows in exchange-traded funds. The positive momentum was supported by escalating tensions between India and Pakistan, which boosted safe-haven demand, and continuing purchases of the metal by the People's Bank of China.

At 1820 IST, the most-active June GOLD contract on the MCX was up 0.1% at INR 96,235 per 10 grams. The most-active June gold contract on COMEX was 1% higher at $3,337.70 per ounce. The highest call open interest on gold was at the INR 100,000 strike, indicating a bullish view. The highest put open interest was at the INR 90,000 strike for the May 27 contract.

The dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 100.36. A weak dollar makes commodities priced in the greenback attractive for holders of other currencies, boosting demand for such commodities.

The People's Bank of China bought 2.18 tonnes of gold in April, the sixth straight month of buying. Gold reserves with the Chinese central bank climbed to 2,294.48 tonnes in April. According to World Gold Council data available for March, the Chinese central bank had 2,292.3 tonnes of gold in its reserve.

Global gold ETFs bought 115.3 tonnes gold in April, the fifth successive month of inflows, the latest WGC data showed. On Thursday, gold holdings with the SPDR Gold Trust, the world's largest gold-backed ETF, rose by 2.01 tonnes to 939.68 tonnes. The fund has a market value of $101.23 billion. On the National Stock Exchange, the total value of gold ETFs traded Friday was INR 2.40 billion, down from INR 3.36 billion Thursday.

The price of 24-carat gold in Mumbai's retail market was INR 96,416 per 10 gm, exclusive of 3% goods and services tax, and that of 22-carat gold was INR 88,317 per 10 gm, exclusive of GST. The price of 18-carat gold was INR 72,312 per 10 gm, exclusive of GST.

SILVER contracts fell despite positive cues from COMEX due to a weak trend in industrial metals. At 1833 IST, the most-active July contract on the MCX was down 0.4% at INR 96,141 per kg, while the same-month contract on COMEX rose 0.3% to $32.71 per ounce.

The MCX Bulldex, which tracks the real-time performance of gold and silver futures on the MCX, was down just 32 points at 22100 points. The turnovers in the June and August gold contracts were INR 53.55 billion and INR 8.55 billion, respectively. The turnovers in the July and September silver contracts was INR 12.14 billion and INR 4.69 million, respectively.

The spot gold-silver ratio, also known as the Mint ratio, rose to 102.36 Friday, indicating that gold had outperformed silver. The ratio measures the ounces of silver required to buy an ounce of gold. The ratio was 101.85 on Thursday.

Outlook for the rest of the session:

--MCX gold seen at INR 95,900–INR 96,450 per 10 gm

--COMEX gold seen at $3,361.80–$3,390.50 an ounce

--MCX silver seen at INR 95,500-INR 97,000 per kg

--COMEX silver seen at $32.45-$32.90 an ounce

End

US$1 = INR 85.37

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

Edited by Nishant Maher

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