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Informist, Friday, Jun. 6, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold pared gains and were steady on the Multi Commodity Exchange of India Friday as the rupee rose against the dollar. On the COMEX, gold prices rose as recent geopolitical tensions boosted the safe-haven appeal of the precious metal. Market participants are now waiting for the US non-farm payroll data later in the day for further cues on the interest rate trajectory.

The rupee ended 0.2% higher at 85.6250 against the dollar Friday. When the rupee appreciates against the dollar, gold prices adjust in the domestic market as the precious metal is priced in rupee terms. The rupee's appreciation against the dollar also makes gold imports cheaper for Indian buyers, increasing the supply.

At 1600 IST, the most-active August GOLD contract on the COMEX was up 0.2% at $3,380 per ounce. The most-active August gold contract on the MCX was steady at INR 97,854 per 10 grams. Earlier in the day, gold prices rose to a six-week high of INR 98,573 per 10 grams on the MCX tracking prices on the COMEX.

"The precious metal has gained on renewed trade tensions, geopolitical risks and a weaker US dollar," analysts at BMI were quoted as saying in a note by Dow Jones. "Earlier in the week, President Trump doubled existing steel and aluminum tariffs to 50%, the Russia-Ukraine war intensified and the dollar slid, improving gold's safe-haven appeal. Gold looks like it has further room to rise, given the US Federal Reserve should eventually cut interest rates again and significant volatility is set to persist as global markets remain on edge," the analysts added.

SILVER prices rose to a record high of INR 106,065 per kg on the MCX earlier Friday, as prices on the COMEX were trading at multi-year highs. At 1606 IST, the most-active July silver contract on the MCX was up 1.3% at INR 105,749 per kg. The same-month contract on COMEX was 1.5% higher at $36.32 per ounce.

"The fact that the price of silver has underperformed gold over a longer period of time has led to a significant undervaluation of silver compared to gold," Carsten Fritsch, commodity analyst at Commerzbank, said in a report. "The undervaluation of silver is apparently also attracting investors," Fritsch added.

Outlook for the rest of the session:

--MCX gold seen at INR 96,580–INR 99,860 per 10 grams

--COMEX gold seen at $3,303.65–$3,432.35 an ounce

--MCX silver seen at INR 99,585-INR 107,915 per kg

--COMEX silver seen at $34.71-$37.19 an ounce

End

US$1 = INR 85.62

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

Edited by Ashish Shirke

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