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Informist, Tuesday, May 27, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold fell on the Multi Commodity Exchange of India and the COMEX Tuesday as easing trade tensions between the US and the European Union diminished the precious metal's safe-haven appeal. A firm dollar also hit the market sentiment.

At 1613 IST, the most-active June GOLD contract on the COMEX was down 2.2% at $3,292.4 per ounce. The most-active June gold contract on the MCX fell 0.9% to INR 95,115 per 10 grams. COMEX gold futures fell because of the strengthening dollar and cooling demand for safe-haven assets amid prospects of improved trade relations between the US and the EU, as Brussels agreed to expedite trade negotiations with Washington, Kotak Securities said in a report.

At 1625 IST, the dollar index, which measures the dollar's strength against a basket of six major currencies, was up 0.5% at 99.38. A stronger dollar makes dollar-denominated commodities such as gold expensive for holders of other currencies, denting demand.

On Monday, US President Donald Trump extended the deadline for imposing 50% tariffs on imports from the European Union till Jul. 9. The European Union's chief trade negotiator said the region was "fully committed" to arrive at a trade agrement with the Trump administration by Jul. 9. On Friday, Trump took to the social media platform Truth Social and threatened the Eurozone with a 50% import tariff and expressed his concerns on the slowdown in trade talks with the region.

SILVER contracts declined on the MCX and COMEX, tracking the fall in gold contracts. At 1626 IST, the most active July silver contract on the MCX was down 1% at INR 97,061 per kg. The same-month contract on COMEX was 1.5% lower at $33.10 per ounce.

Market participants await the US Conference Board consumer confidence data, due later in the day, for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 94,299–INR 97,821 per 10 gm

--COMEX gold seen at $3,259.0–$3,423.0 an ounce

--MCX silver seen at INR 95,950-INR 99,846 per kg

--COMEX silver seen at $32.45-$34.20 an ounce

End

US$1 = INR 85.33

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

Edited by Saji George Titus

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