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Informist, Thursday, May 7, 2026

 

By Ashutosh Pati

 

MUMBAI – Futures contracts of gold and silver extended gains for a third straight session on the Multi Commodity Exchange of India Thursday, tracking a rise in contracts on the COMEX due to a fall in the dollar index. Market sentiment was lifted as hopes of a deal between the US and Iran eased concern about inflation and higher interest rates.

 

At 1534 IST, the most active June contract of GOLD was up 0.5% at INR 152,940 per 10 grams on the MCX. The same-month contract on COMEX was up 1.0% at $4,742.7 per ounce. The most active July SILVER contract on the MCX was up 2.8% at INR 260,416 per kilogram and the same-month contract on COMEX was up 4.4% at $80.70 per ounce.

 

US-based news website Axios reported Wednesday that the US and Iran were nearing an agreement on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations. US President Donald Trump Wednesday said that Washington had "very good talks" with Tehran in the last 24 hours, adding, "We're in good shape, and now we're doing well, and we have to get what we have to get." Iran is expected to respond Thursday to the US proposal to end the war, moving closer to an agreement on a short memorandum, CNN reported, citing sources.

 

"Markets are increasingly anticipating a constructive outcome in the coming days, with hopes that the current ceasefire discussions could eventually convert into a broader long-term peace framework if both sides agree on the proposed terms," Jateen Trivedi, vice president research analyst-commodity and currency at LKP Securities, said in a note.

 

COMEX gold prices rose to an over two-week high of $4,763.6 per ounce while silver prices on the bourse rose to a nearly three-week high of $80.89 per ounce earlier in the day. "The report accelerated drop in oil prices and bond yields as hopes of a US-Iran deal eased inflation expectations, while the dollar also retreated to pre-war levels, a combination that continues to remove the inflation overhang that had capped bullion since late February," Kaynat Chainwala, assistant vice president commodity research at Kotak Securities, said in a note.

 

Market participants are now waiting for the US non-farm employment change data on Friday for further cues on the interest rate trajectory in the country. "On the macro front, softer-than-expected ADP payroll data reinforced signs of a cooling US labour market. If Friday's official jobs report confirms the slowdown, expectations for potential Federal Reserve rate cuts could strengthen further, providing an additional boost to non-yielding assets like gold and silver," Chainwala said.

 

Outlook for the rest of the session:

--MCX gold seen at INR 150,000–INR 155,000 per 10 grams

--COMEX gold seen at $4,680.0–$4,780.0 an ounce

--MCX silver seen at INR 254,000-INR 265,000 per kg

--COMEX silver seen at $74.00-$84.00 an ounce

 

End

 

US$1 = INR 94.25

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

 

Edited by Avishek Dutta

 

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