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Informist, Tuesday, Apr. 28, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold fell to a one-month low on the Multi Commodity Exchange of India Tuesday, tracking a fall in global prices on COMEX amid a stronger dollar. Market sentiment was also hurt as higher crude oil prices heightened fears of an uptick in inflation ahead of policy meetings of key central banks, analysts said.

 

At 1815 IST, the most active June contract of GOLD was down 1.4% at INR 149,615 per 10 grams on the MCX after hitting a one-month low of INR 148,681. The same-month contract on COMEX was down 2% at $4,604.8 per ounce after hitting a one-month low of $4,567.6 per ounce.

 

At 1815 IST, the most active July SILVER contract on the MCX was down 1.5% at INR 243,266 per kilogram after hitting a three-week low of INR 239,033. The same-month contract on COMEX was down 2% at $74.03 per ounce after hitting a three-week low of $72.43 per ounce.

 

Gold and silver prices fell Tuesday, extending a fall from the previous session, on a strong dollar and higher crude oil prices. A strong greenback makes commodities priced in the dollar, such as gold and silver, less appealing to holders of other currencies, thereby denting demand.

 

Gold and silver prices fell as the crude oil price on NYMEX was up nearly 4% at $100.24 per barrel amid concern of a prolonged supply disruption in the Strait of Hormuz. US President Donald Trump said he is unlikely to accept Iran's latest proposal to resolve the two-month conflict, citing the absence of clarity on Iran's nuclear weapons programme and enriched uranium stockpiles.

 

"If the increase in oil prices continues, market participants could even start pricing in an interest rate hike again, as they did in mid-March. In that case, the gold price could, as it did then, fall back towards USD 4,500 per troy ounce," Commerzbank said in a report. While gold is traditionally viewed as an inflation hedge, rising interest rates diminish the appeal of the non-interest-yielding asset.

 

Bullion prices also fell as market participants remained cautious ahead of a series of central bank meetings this week. Tuesday, the Bank of Japan kept the country's benchmark interest rate unchanged at 0.75%, but three members voted for a rate hike, citing inflationary pressures emerging from the crisis in West Asia.

 

The US Federal Reserve and Bank of Canada will detail their policy decisions Wednesday and the European Central Bank and Bank of England Thursday. "Higher energy prices have strengthened expectations that central banks, including the Fed, ECB, and BOJ, may maintain higher interest rates for longer or tighten further, pressuring non-yielding gold," Kedia Advisory said in a report.  

 

Outlook for the rest of the session:

--MCX gold seen at INR 148,000–INR 152,500 per 10 grams

--COMEX gold seen at $4,580–$4,660 an ounce

--MCX silver seen at INR 234,000-INR 245,000 per kg

--COMEX silver seen at $70.00-$76.00 an ounce

 

End

 

US$1 = INR 94.54

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

 

Edited by Rajeev Pai

 

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