India Bullion
Gold rises on renewed safe-haven appeal, weaker dollar
This story was originally published at 18:28 IST on 2 June 2025
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By Ashutosh Pati
MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX on Monday as tensions between Russia and Ukraine and US President Donald Trump's threat to double tariffs on steel and aluminium boosted the safe-haven appeal of the precious metal. Market sentiment was further lifted as the dollar index fell to a near four-week low.
Trump on Friday alleged that China had "totally violated" the preliminary trade agreement. US Trade Representative Jamieson Greer Friday said "we are very concerned with" China's non-compliance with the temporary trade agreement and US Treasury Secretary Scott Bessant Sunday said Trump would soon speak to Chinese President Xi Jingping to discuss a dispute over critical minerals.
At 1706 IST, the most-active August GOLD contract on the COMEX was up 1.9% at $3,377.7 per ounce. The most-active August gold contract on the MCX rose 1.6% to INR 97,450 per 10 grams.
"Gold prices edged higher to $3,370/oz on COMEX, buoyed by renewed safe-haven demand amid escalating geopolitical and trade tensions. The precious metal gained nearly 2% after Ukraine launched drone strikes deep into Russian territory, prompting one of Moscow's largest retaliatory assaults on Kyiv just ahead of critical peace talks," Kotak Securities said in a report.
At 1710 IST, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.6% at 98.78. A weaker dollar makes dollar-denominated commodities such as gold cheaper for holders of other currencies, aiding demand.
SILVER contracts rose on the MCX and COMEX, tracking the rise in gold prices. At 1712 IST, the most-active July silver contract on the MCX was up 0.9% at INR 97,930 per kg. The same-month contract on COMEX was 1.3% higher at $33.44 per ounce.
Market participants are waiting for the US Institute for Supply Management manufacturing purchasing managers index due later Monday.
Outlook for the rest of the session:
--MCX gold seen at INR 95,274–INR 99,034 per 10 grams
--COMEX gold seen at $3,257.0–$3,438.9 an ounce
--MCX silver seen at INR 95,882-INR 99,950 per kg
--COMEX silver seen at $32.36-$34.21 an ounce
End
US$1 = INR 85.38
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
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