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Informist, Friday, Jul. 25, 2025

By Ashutosh Pati

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India fell for the third consecutive session on Friday, tracking a fall in contracts on the COMEX because of a rise in the dollar index. Market sentiment was also hurt as easing trade tensions lowered the safe-haven appeal of the precious metal.

At 1759 IST, the dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.2% at 97.73. A stronger dollar makes dollar-denominated commodities such as gold expensive for those holding other currencies, denting demand.

Moreover, robust economic data from the US bolstered expectations that the US Federal Reserve will maintain interest rates at its upcoming meeting. The initial jobless claims data for the week ended Saturday fell to a three-month low, hinting at a stable labour market amid ongoing tariff uncertainy. The initial jobless claims data, published Thursday, showed the number of Americans filing for unemployment benefits fell 4,000 to 217,000, the lowest level since April. Economists polled by Reuters had expected 226,000 claims for the same period.

At 1802 IST, the most-active August GOLD contract on COMEX was down 0.9% at $3,342.3 per ounce. The most-active August gold contract on the MCX was down 0.7% at INR 98,075 per 10 grams. "Headwinds (for gold prices) are coming from the easing of the trade conflict," Carsten Fritsch, commodity analyst at Commerzbank said in a report.

Media reports suggested the US could be close to reaching an agreement with the European Union, which could be on the lines of its trade deal with Japan. According to reports, the potential deal would see the US impose a 15% tariff on imports from the EU, with both parties waiving tariffs on certain products.

SILVER contracts also fell, tracking a fall in prices of gold. At 1805 IST, the most-active September silver contract on the MCX was down 0.4% at INR 114,722 per kilogram. The same-month contract on COMEX was down 0.6% at $38.98 per ounce.

Outlook for the rest of the session:

--MCX gold seen at INR 96,832–INR 99,714 per 10 grams

--COMEX gold seen at $3,286.0–$3,406.2 an ounce

--MCX silver seen at INR 112,809-INR 117,151 per kg

--COMEX silver seen at $37.94-$39.68 an ounce

End

US$1 = INR 86.51

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

Edited by Avishek Dutta

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