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Informist, Friday, May 29, 2026

By Reshma Ravi

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India fell Friday as the rupee strengthened against the dollar. However, gold contracts on COMEX rose as concern about a further rise in inflation eased amid progress in the talks between the US and Iran.

At 1501 IST, the most active August contract of GOLD was down 0.4% at INR 160,273 per 10 grams on the MCX. The same-month contract on COMEX was up 0.3% at $4,528.5 per ounce. The most active July SILVER contract on the MCX was down 1.4% at INR 265,648 per kilogram. The same-month contract on COMEX was down 0.6% at $75.74 per ounce.

Prices on the domestic exchange rose because of the sharp rise in the rupee. The rupee ended 0.7% higher at 95.0000 against the dollar. When the rupee appreciates against the dollar, gold and silver prices adjust in the domestic market as the precious metals are priced in rupee terms.

However, gold prices rose on COMEX as reports indicated the US and Iran have reached an agreement on a memorandum of understanding to extend the ceasefire for 60 days to allow for formal negotiations, though US President Donald Trump was yet to approve it, analysts at Kedia Advisory said.

Speaking on Thursday evening, US Vice-President J.D. Vance said negotiators were "going back and forth on a couple of language points", which include the "question of enrichment", the BBC reported. "We are not there yet, but we are very close, and we are going to keep on working at it," Vance was quoted as saying. Markets participants are now waiting for the deal to be signed even if it's only just pending Trump's signature, Manoj Jain, director of Prithvi Finmart, said. However, if Trump does not sign the deal, it will weigh on gold and silver prices, Jain added.

Prices on COMEX also rose because of lower expectations of an interest rate hike. "...the market now views Fed (US Federal Reserve) interest rate hikes as less likely, a development from which gold benefits as a non-interest-bearing asset. Market expectations for the US key interest rate at the end of the year, as indicated by Fed funds futures, have been scaled back by around 10 basis points since the start of the week," Commezbank said in a report. 

Outlook for the rest of the session:

--MCX gold seen at INR 154,500–INR 158,000 per 10 grams

--COMEX gold seen at $4,510–$4,590 an ounce

--MCX silver seen at INR 262,500-INR 271,800 per kg

--COMEX silver seen at $73.00-$80.00 an ounce

End

US$1 = INR 95.00

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

Edited by Rajeev Pai

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