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Informist, Wednesday, Jun. 4, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India and the COMEX because of a weakness in the dollar. Market sentiment was also lifted as the latest trade tensions between the US and China boosted the safe-haven demand for the precious metal.

"(US) President (Donald) Trump's directive to double steel and aluminium tariffs to 50%, effective Wednesday, exacerbated trade friction with China and the European Union. This overshadowed positive US job openings data, which had previously boosted sentiment about the American economy's resilience," Kotak Securities said in a report. 

At 1943 IST, the most-active August GOLD contract on the COMEX was up 0.2% at $3,383.1 per ounce. The most-active August gold contract on the MCX was up 0.5% at INR 98,166 per 10 grams. "Further supporting gold's appeal, the OECD (Organisation for Economic Cooperation and Development) recently lowered its global growth outlook, citing increased pressure on the US economy from trade disputes and weak US factory orders," Kotak Securities said.

Meanwhile, global central banks bought 12 tonnes of gold in April, down 12% from a month ago, according to the World Gold Council. The National Bank of Poland continued to be the largest central bank buyer of gold in April, taking its reserves to 509 tonnes, WGC said. The Czech National Bank added 3 tonnes, taking its reserves to 59 tonnes. People's Bank of China increased its gold reserves by 2 tonnes in April to 2,294 tonnes.

SILVER contracts were up on the MCX and COMEX, tracking the rise in gold and industrial metals. At 1955 IST, the most-active July silver contract on the MCX was up 0.1% at INR 101,331 per kg. The same-month contract on COMEX was 0.2% higher at $34.68 per ounce.

Market participants are awaiting the US official non-farm employment data due Friday for further cues.

Outlook for the rest of the session:

--MCX gold seen at INR 96,492–INR 99,768 per 10 grams

--COMEX gold seen at $3,279.6–$3,446.8 an ounce

--MCX silver seen at INR 99,285-INR 103,739 per kg

--COMEX silver seen at $33.48-$35.58 an ounce

End

US$1 = INR 85.90

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

Edited by Saji George Titus

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