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Informist, Thursday, Jan. 1, 2026

By Reshma Ravi

MUMBAI – Futures contracts of gold Thursday rose on the Multi Commodity Exchange of India because of a weak rupee against the dollar. Prices rose despite thin trading and lack of fresh triggers from international markets on account of New Year Day holiday. 

The rupee closed at 89.9625, down 0.1% against the dollar. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees. 

At 1700 IST, the most-active February GOLD contract on the MCX was up 0.2% at INR 135,728 per 10 gram. The prices also rose due to  the rising safe-haven demand amid geopolitical tensions between Russia and Ukraine. Vladimir Saldo, the Russian-installed governor of Ukraine's southern Kherson region, accused Ukraine on Thursday of killing at least 24 people, in a drone strike on a hotel and cafe where New Year celebrations were being held, Reuters reported. 

Futures contracts of silver fell on MCX in a thin trade due to lack of fresh triggers from COMEX on account of New Year's Day holiday. At 1703 IST, the most-active March SILVER contract on the MCX was down 0.1% at INR 235,500 per kilogram.

Prices also fell due to a rise in margins on precious metal futures. The Chicago Mercantile Exchange announced that it would raise margins on precious metal futures for the second time in a week. The group has increased the margin on silver futures by 30% to $32,500 from $25,000, it said in a release.

Additionally, "the powerful rally in gold and silver that pushed prices to record highs last year is likely not over yet, with momentum expected to extend into 2026. However, investors should be prepared for heightened volatility as speculative activity may trigger sudden spikes as well as sharp pullbacks," SMC Global Securities said in a report.

Outlook for the rest of the session:

--MCX gold seen at INR 134,000–INR 137,200 per 10 grams

--MCX silver seen at INR 233,000-INR 238,000 per kg

End

US$1 = INR 89.96

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

Edited by Akul Nishant Akhoury

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