More Stories

Informist, Monday, May 19, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX Monday because of renewed safe-haven appeal after Moody's downgraded the US sovereign credit rating on concerns over fiscal health. Market sentiment was also lifted by a weaker dollar.

Moody's Ratings Friday downgraded the US long-term issuer and senior unsecured ratings to 'Aa1' from 'Aaa'. It joined Fitch Ratings and S&P Global in rating the world's largest economy one notch below the top rating. The downgrade reflects the increase in government debt and interest payment ratios over the last decade, which have now increased to levels significantly above similarly rated countries, Moody's said.

At 1748 IST, the Dollar Index, which measures the strength of the greenback against a basket of six major currencies, was down 0.5% at 101.24. A weaker dollar makes the dollar-denominated precious metal less expensive for holders of other currencies, aiding demand.

"Investors are assessing Moody's downgrade of the US credit rating, which has amplified concerns about the US economic outlook and fostered a risk-off sentiment. Despite last week's over 3% tumble due to eased US-China trade tensions, gold is finding renewed support," Kotak Securities said in a report.

At 1751 IST, the most active June GOLD contract on the MCX rose 1.3% to INR 93,650 per 10 grams. The most active June gold contract on COMEX was up 1.8% at $3,245.4 per ounce.

Moreover, US Treasury Secretary Scott Bessent said tariffs will return to a 'reciprocal' level if nations don't reach agreements during the 90-day pause, further fuelling the safe-haven appeal of the precious metal.

SILVER contracts rose on the MCX and the COMEX, tracking the rise in gold contracts. At 1752 IST, the most active July silver contract on the MCX was up 0.8% at INR 96,113 per kilogram. The same-month contract on the COMEX was 1.3% higher at $32.77 per ounce.

Investors are waiting for a speech by US Federal Open Market Committee member Neel Kashkari for further cues on the interest rate trajectory in the US.

Outlook for the rest of the session:

--MCX gold seen at INR 90,919–INR 96,373 per 10 gm

--COMEX gold seen at $3,124.8–$3,358.7 an ounce

--MCX silver seen at INR 93,475-INR 98,511 per kg

--COMEX silver seen at $31.48-$33.60 an ounce

End

US$1 = INR 85.40

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

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.