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Informist, Monday, Jul. 21, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India Monday, tracking a rise in contracts on the COMEX because of a weak dollar. Market sentiment was also boosted after US Federal Reserve Governor Chris Waller suggested a potential rate cut.

At 1732 IST, the dollar index, which measures the strength in the greenback against a basket of six currencies, was down 0.4% at 98.05. A weak dollar makes dollar-denominated commodities, such as gold, cheaper for those holding other currencies, aiding demand.

Fed Governor Waller suggested last week that the central bank should cut interest rates at the upcoming monetary policy meeting, which triggered a fall in US Treasury yields, supporting the gold market. Lower interest rates make the non-interest-bearing precious metal attractive to investors, hence increasing demand.

Moreover, US retail sales in June exceeded expectations, with initial jobless claims fewer than expected. Retail sales rose 0.6% in June from the previous month, rebounding from the steep 0.9% decline in May. The jobless rate fell to 4.1% in June after remaining at 4.2% for three straight months. The positive data signalled the possibility of a rate cut by the Fed. According to the CME FedWatch tool, the odds of a 25-basis-point rate cut by the US Fed in September rose to 59.7% from 58.9% a week ago.

At 1738 IST, the most-active August GOLD contract on COMEX was up 0.7% at $3,382.2 per ounce. The most-active August gold contract on the MCX was up 0.7% at INR 98,695 per 10 grams. 

SILVER contracts also rose, tracking a rise in prices of gold and industrial metals. At 1739 IST, the most-active September silver contract on the MCX was up 0.8% at INR 113,879 per kilogram. The same-month contract on COMEX was up 1.2% at $38.91 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 97,183–INR 99,689 per 10 grams

--COMEX gold seen at $3,312.1–$3,418.5 an ounce

--MCX silver seen at INR 111,248-INR 115,892 per kg

--COMEX silver seen at $37.55-$39.37 an ounce

End

US$1 = INR 86.29

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

Edited by Saji George Titus

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