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Informist, Monday, Jun. 9, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of silver extended the rally and rose to a record high on the Multi Commodity Exchange of India for the third consecutive day, tracking a rise in contracts on COMEX, where prices of the metal are trading at multi-year highs. Strong technical momentum, robust industrial demand, and deepening supply deficits in the global silver market are acting as tailwinds for silver prices, according to analysts.

At 1840 IST, the most-active July SILVER contract on the MCX was 0.5% higher at INR 106,027 per kg. Prices rose to a record high of INR 106,436 per kg on the MCX earlier Monday. The same-month contract on COMEX was 0.9% higher at $36.47 per ounce.

"A confluence of macroeconomic and technical drivers underpins this surge: renewed trade tensions, bullish positioning, and growing safe-haven demand have spurred strong investor interest, evidenced by a nearly 6% rise in open interest of exchange-traded funds and a 1.5% weekly gain in silver-backed ETFs, the best since February," Riya Singh, research analyst at Emkay Global Financial Services, said in a note. "The gold-silver ratio has dropped from April's 100+ level to around 92, still above the five-year average of about 82, suggesting further room for silver to catch up," she added.

Gold contracts edged lower on the Multi Commodity Exchange of India and COMEX Monday as better-than-expected economic data from the US lowered expectations of an imminent interest rate cut by the US Federal Reserve. Market participants will be watching the trade talks between China and the US in London later in the day.

At 1840 IST, the most-active August GOLD contract on COMEX was down 0.2% at $3,340.2 per ounce. The most-active August gold contract on the MCX fell 0.2% to INR 96,828 per 10 grams.

"The strength of the economy lowered market expectations for a sizeable US interest rate cut in the near term, damping enthusiasm for non-interest bearing bullion," SP Angel analysts were quoted by Dow Jones in a note. The US non-farm payrolls data showed the country added 139,000 jobs in May, higher than the 125,000 jobs expected by economists polled by The Wall Street Journal.

However, losses in the yellow metal were restricted by intensification of the Russia-Ukraine war. "Escalating geopolitical tensions from the Russia-Ukraine war are providing support to gold. Russia's recent massive drone and missile strikes on Kyiv and other Ukrainian cities, following Ukraine's attacks on Russian air bases, underscore the ongoing conflict," Kotak Securities said in a note.

Outlook for the rest of the session:

--MCX gold seen at INR 95,062–INR 98,618 per 10 grams

--COMEX gold seen at $3,237.9–$3,400.8 an ounce

--MCX silver seen at INR 103,445-INR 108,755 per kg

--COMEX silver seen at $35.13-$37.44 an ounce

End

US$1 = INR 85.62

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

Edited by Nishant Maher

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