More Stories

Informist, Tuesday, Jul. 1, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India Tuesday, tracking rise in contracts on the COMEX because of a weak dollar. Market sentiment was also lifted by rising bets of multiple interest rate cuts by the US Federal Reserve this year and a potential rise in US debt.

At 1550 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.4% at 96.43. A weak dollar makes dollar-denominated commodities such as gold cheaper for those holding other currencies, aiding demand.

"The dollar's drop came amid worries over a swelling US deficit due to a massive tax and spending bill progressing through the Senate. Tensions rose after President Trump threatened new tariffs on Japan ahead of a looming deadline for higher levies," Kedia Advisory said in a note.

At 1554 IST, the most-active August GOLD contract on the COMEX was up 1.5% at $3,358.7 per ounce. The most-active August gold contract on the MCX was 1.3% higher at INR 97,293 per 10 grams. "The precious metal is rallying for the second day, as expectations grow that the Fed might resume loosening monetary policy later this year," Dow jones quoted MUFG analysts as saying in a note. "At the same time, trade uncertainty persists under President Trump's administration and the dollar has had its worst first-half performance since 1973," the analysts added.

Market participants are waiting for the US Institute for Supply Management's manufacturing purchasing managers' index and the Job Openings and Labor Turnover Survey's monthly report, both 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 and industrial metals. At 1604 IST, the most-active September silver contract on the MCX was up 1.1% at INR 107,468 per kg. The same-month contract on COMEX was 1.6% higher at $36.73 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 96,400–INR 97,800 per 10 grams

--COMEX gold seen at $3,320–$3,3380 an ounce

--MCX silver seen at INR 106,200-INR 108,800 per kg

--COMEX silver seen at $36.20-$37.30 an ounce

End

US$1 = INR 85.52

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

Edited by Ashish Shirke

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.