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Informist, Tuesday, May 20, 2025

By J. Navya Sruthi

MUMBAI – Futures contracts of gold and silver were marginally higher on the Multi Commodity Exchange of India on Tuesday, tracking the contracts on COMEX which rose due to safe-haven demand, analysts said. 

Moody's Ratings Friday downgraded the US long-term issuer and senior unsecured ratings to 'Aa1' from 'Aaa', joining 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 1933 IST, the most-active June GOLD contract on the MCX rose over 1% to INR 94,324 per 10 grams. The most-active June gold contract on COMEX was up 0.4% at $3,247.1 per ounce.

"Gold prices rose above $3,220 per ounce on Tuesday, driven by continued investor caution over the US fiscal outlook following Moody's downgrade of the country's credit rating," Kedia Advisory said in a note. 

However, the upside in gold prices was restricted because of the latest developments in Russia-Ukrain peace talks. A call between President Trump and Russian President Vladimir Putin didn't seem to yield any major breakthroughs, but Trump said Moscow and Kyiv 'will immediately start negotiations toward a ceasefire', Dow Jones said in a report.  

SILVER contracts rose on the MCX and the COMEX, tracking the rise in gold contracts. At 1932 IST, the most-active July silver contract on the MCX was up nearly 1% at INR 96,286 per kilogram. The same-month contract on the COMEX was marginally higher at $32.67 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 92,800–INR 94,400 per 10 gm

--COMEX gold seen at $3,208–$3,260 an ounce

--MCX silver seen at INR 94,500-INR 97,200 per kg

--COMEX silver seen at $32-$32.90 an ounce

End

US$1 = INR 85.64

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

Edited by Tanima Banerjee

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