More Stories

Informist, Wednesday, May 21, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX Wednesday as rising geopolitical tensions in West Asia boosted the safe-haven appeal of the precious metal. Market sentiment was also lifted by a weaker dollar.

At 1745 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.3% at 99.69. A weaker dollar makes the dollar-denominated precious metal less expensive for holders of other currencies, aiding demand.

Israel could be preparing for a potential military strike on nuclear facilities in Iran, CNN reported, citing US officials. "Geopolitical tensions, including potential Israeli strikes on Iranian nuclear sites and the uncertain progress of Russia-Ukraine ceasefire talks alongside trade deal developments, also contributed to the upward pressure on gold," Kotak Securities said in a report.

At 1753 IST, the most active June GOLD contract on the MCX rose 0.6% to INR 95,375 per 10 grams. The most active June gold contract on COMEX was up 0.8% at $3,311.5 per ounce. Moreover, US President Donald Trump's indication of stepping back from mediating between Russia and Ukraine added to the uncertainties, the report said.

SILVER contracts rose on the MCX and COMEX, tracking the rise in gold contracts. At 1755 IST, the most active July silver contract on the MCX was up 0.4% at INR 97,715 per kg. The same-month contract on COMEX was 0.4% higher at $33.30 per ounce.

Investors are waiting for speeches by US Federal Open Market Committee members Thomas Barkin and Michelle Bowman for further cues on the interest rate trajectory in the US.

Outlook for the rest of the session:

--MCX gold seen at INR 93,049–INR 97,993 per 10 gm

--COMEX gold seen at $3,207.4–$3,419.0 an ounce

--MCX silver seen at INR 95,356-INR 100,116 per kg

--COMEX silver seen at $32.18-$34.16 an ounce

End

US$1 = INR 85.63

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

Edited by Rajeev Pai

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.