More Stories

Informist, Friday, May 23, 2025

By J. Navya Sruthi

MUMBAI – Futures contracts of gold were up on the Multi Commodity Exchange of India, tracking gains in COMEX due to a weak dollar. Though silver prices rose on COMEX, they were down on the domestic exchange as the rupee appreciated against the dollar on Friday, analysts said. 

A weaker dollar makes the dollar-denominated commodities like gold less expensive for holders of other currencies, aiding demand. At 1919 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 99.41, down from 99.90 Thursday.

US President Donald Trump's threat of fresh tariffs on the European Union fueled market uncertainty and boosted demand for safe-haven assets. Gold is considered a safe-haven asset amid geopolitical and economic uncertainties. "I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States," Trump said Friday in a social media post on Truth.    

At 1919 IST, the most-active June GOLD contract on the COMEX was up nearly 2% at $3,344.9 per ounce. However, the strength of the rupee capped the rise in gold prices on the MCX. The most-active June gold contract on the MCX rose 0.6% to INR 96,100 per 10 grams.

The rupee on Friday has gained almost 0.9% against the greenback and ended at a two-week high of 85.21 a dollar. When the rupee appreciates against the dollar, gold prices adjust in the domestic market as it is priced in rupee terms.

The appreciation of the rupee also weighed on SILVER prices on the MCX. At 1920 IST, the most-active May silver contract on the MCX was down 0.6% at INR 97,239 per kg. The same-month contract on the COMEX was up 0.3% at $33.31 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 95,400–INR 96,600 per 10 gm

--COMEX gold seen at $3,231.1–$3,425.1 an ounce

--MCX silver seen at INR 97,100-INR 99,300 per kg

--COMEX silver seen at $32.14-$34.19 an ounce

End

US$1 = INR 86.00

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

Edited by Saji George Titus

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.