India Bullion
Gold flat on MCX as rupee rises; up on COMEX as dollar weak
This story was originally published at 17:20 IST on 26 June 2025
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By Ashutosh Pati
NEW DELHI – Futures contracts of gold pared gains and were steady on the Multi Commodity Exchange of India Thursday because of a sharp rise in the rupee against the dollar. On the COMEX, gold prices rose because of a weak dollar and dovish signals from the US Federal Reserve.
The rupee ended 0.4% higher at 85.7050 against the dollar Thursday. When the rupee appreciates against the dollar, gold prices adjust in the domestic market as the precious metal is priced in rupee terms.
At 1634 IST, the most-active August GOLD contract on the COMEX was up 0.4% at $3,355.0 per ounce. The most-active August gold contract on the MCX was steady at INR 97,400 per 10 grams.
"(US) President Trump's suggestion of an early Fed Chairman announcement, expected to favor a pro-low-rate candidate, amplified market expectations for looser monetary policy," Kotak Securities said in a report. "This sentiment was further reinforced by Chairman Powell's remarks implying that softer tariffs would be disinflationary, prompting the FOMC to consider easing financial conditions," it said. Lower rates boost the appeal of the non-interest-yielding precious metal.
Market participants are waiting for the US final GDP and initial unemployment claims data, due later in the day, for further cues on the interest rate trajectory in the country.
SILVER contracts rose on the MCX and COMEX tracking gains in gold. A weaker dollar also supported prices of silver. At 1655 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.4% at 97.27. A weak dollar makes dollar-denominated commodities such as gold and silver cheaper for those holding other currencies, aiding demand.
At 1656 IST, the most-active July silver contract on the MCX was up 0.7% at INR 106,764 per kg. The same-month contract on COMEX was 1.1% higher at $36.52 per ounce.
Outlook for the rest of the session:
--MCX gold seen at INR 95,428–INR 99,058 per 10 grams
--COMEX gold seen at $3,261.5–$3,388.1 an ounce
--MCX silver seen at INR 102,368-INR 107,322 per kg
--COMEX silver seen at $34.78-$36.71 an ounce
End
US$1 = INR 85.70
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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