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Informist, Monday, May 4, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India edged lower Monday, tracking a fall in contracts on the COMEX because of a rise in the dollar index. Market sentiment was also hurt as higher crude oil prices fuelled concerns about inflation and the possibility of higher interest rates. Bullion prices were also under pressure due to thin trade as markets in Japan, China, and the UK were shut on account of holidays.

 

At 1550 IST, the most active June contract of GOLD was down 1.3% at INR 149,370 per 10 grams on the MCX. The same-month contract on COMEX was down 2% at $4,554.30 per ounce. The most active July SILVER contract on the MCX was down 3.5% at INR 242,252 per kilogram and the same-month contract on COMEX was down 4% at $73.39 per ounce.

 

"Higher energy costs risk prompting central banks to hold interest rates elevated longer, adding pressure on non-yielding bullion," Kaynat Chainwala, assistant vice-president commodity research at Kotak Securities, said in a note. "Both metals slipped to near one-month lows last week on a hawkish Fed stance, with three officials dissenting against softening language in the April FOMC statement, effectively pricing out 2026 rate cuts," Chainwala added.

 

At 1615 IST, the dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.2% at 98.31. A stronger dollar makes dollar-denominated commodities such as gold and silver expensive for holders of other currencies, denting demand. Market participants are now focused on the US non-farm employment change data due Friday for further cues on the interest rate trajectory in the country.

 

Meanwhile, US President Donald Trump announced a plan on Sunday called 'Project Freedom' to help ships stuck in the Strait of Hormuz. The initiative is aimed at escorting ships that do not belong to warring nations to exit the strait. However, the head of the Iranian parliament's National Security Commission, Ebrahim Azizi, warned that US intervention in the Strait "will be considered a violation of the ceasefire", reports said. Iran also said that the US had responded to the latest peace proposal submitted by Iran, and Tehran was reviewing the response.

 

Outlook for the rest of the session:

--MCX gold seen at INR 147,000–INR 152,000 per 10 grams

--COMEX gold seen at $4,520.0–$4,600.0 an ounce

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

--COMEX silver seen at $71.00-$76.00 an ounce

End

 

US$1 = INR 95.09

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

 

Edited by Avishek Dutta

 

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