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Informist, Wednesday, May 28, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and COMEX Wednesday ahead of the release later in the day of the minutes of the US Federal Open Market Committee's May 6-7 monetary policy meeting. Market sentiment was driven by bargain hunting after prices fell in the previous session, according to analysts.

At 1727 IST, the most-active August GOLD contract on COMEX was up 0.2% at $3,335.4 per ounce. The most-active August gold contract on the MCX rose 0.4% to INR 96,288 per 10 grams.

"Gold prices are currently holding above $3,330 as markets await the release of the FOMC minutes and speeches from Federal Reserve officials for further policy signals," Kaynat Chainwala, assistant vice-president, commodity research, Kotak Securities, said in a note. "Meanwhile, Federal Reserve Bank of New York President John Williams emphasised the need for a strong response from central banks if inflation deviates from target. Besides, concerns over US fiscal outlook may provide a cushion."

However, gains in gold prices were capped as trade tensions between the US and the European Union eased, reducing the precious metal's safe-haven appeal. US President Donald Trump Monday extended the deadline for imposing 50% tariffs on imports from the European Union till Jul. 9.

SILVER contracts rose on the MCX and COMEX, tracking the rise in gold contracts. At 1733 IST, the most active July silver contract on the MCX was up 0.4% at INR 97,820 per kg. The same month contract on COMEX was 0.1% higher at $33.33 per ounce.

Market participants now await the US Richmond Manufacturing Index, due later Wednesday, for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 93,998–INR 97,562 per 10 gm

--COMEX gold seen at $3,239.4–$3,409.1 an ounce

--MCX silver seen at INR 96,108-INR 100,202 per kg

--COMEX silver seen at $32.53-$34.32 an ounce

End

US$1 = INR 85.36

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

Edited by Nishant Maher

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