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Informist, Friday, Apr. 24, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver rose on the Multi Commodity Exchange of India Friday, tracking an increase in contracts on COMEX due to a weak dollar. However, gains in prices are likely to be capped as higher crude oil prices fuel fears of inflation amid prolonged US–Iran tensions and the ongoing Strait of Hormuz blockade, analysts said. Gold and silver are on track for a weekly decline after a three-week and four-week winning streaks, respectively, analysts said. 

 

At 1725 IST, the most-active June contract of GOLD was up 0.3% at INR 152,296 per 10 grams on the MCX. The same-month contract on COMEX was up 0.1% at $4,747.7 per ounce. The most-active May SILVER contract on the MCX was up 0.9% at INR 243,765 per kilogram. The same-month contract on COMEX was up 0.5% at $75.88 per ounce.

 

At 1631 IST, the dollar index, which measures the greenback's strength against a basket of six major currencies, was down 0.2% at 98.58. A weaker dollar makes dollar-denominated commodities such as gold and silver cheaper for holders of other currencies, boosting demand. 

 

Kotak Securities said the CME Group's decision to lower margin requirements for gold and silver futures signals normalisation in volatility, potentially improving liquidity and participation. On Thursday, the Chicago Mercantile Exchange cut the initial margin on its gold futures to 6% from 7% and on its silver futures to 11% from 14%.  

 

The gains in prices are likely to be capped due to concerns about higher inflation driven by rising crude oil prices stemming from the war in West Asia. "Stalled US–Iran negotiations and the continued Strait of Hormuz blockade have sustained elevated energy prices, prompting markets to price out any rate cuts in 2026, with a rate hike now considered a live possibility," Kaynat Chainwala, assistant vice-president of commodity research, Kotak Securities, said in a note. US President Donald Trump ordered the US military to "shoot and kill" any Iranian boats placing sea mines in the Strait of Hormuz, a move that could jeopardise the fragile ceasefire between the two countries. Trump's statements came after the US military seized another tanker carrying Iranian oil in the Indian Ocean.

 

While gold is often seen as an inflation hedge, elevated rates make yield-bearing assets more attractive, weighing on demand for non-yielding bullion. "With de-escalation prospects fading and monetary policy expected to stay tight, gold and silver prices are likely to remain under pressure in the near term," Chainwala said.

 

Price gains are also likely to be capped due to hawkish comments from US Federal Reserve chair nominee Kevin Warsh. Kevin said he would protect the Fed's independence and called for a new framework to address persistent inflation without committing to easing interest rates. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 149,000–INR 154,000 per 10 grams

--COMEX gold seen at $4,700–$4,790 an ounce

--MCX silver seen at INR 238,000-INR 246,500 per kg

--COMEX silver seen at $72.00-$77.00 an ounce

End

 

US$1 = INR 94.25

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

 

Edited by Saji George Titus

 

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