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Informist, Friday, Jun. 5, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India fell on Friday and are on track for a weekly ‌loss, as the rupee strengthened sharply against the US dollar, analysts said. Uncertainty surrounding US-Iran peace talks and renewed hostilities in West Asia also weakened market sentiment, analysts said. Investors now await the May US non-farm payroll data, due later in the day, to gauge the US Federal Reserve's monetary policy path.

 

At 1648 IST, the most active August contract of GOLD was down 0.9% at INR 158,142 per 10 grams on the MCX. The same-month contract on COMEX was down 0.3% at $4,492.2 per ounce. The most active July SILVER contract on the MCX was down 2% at INR 259,923 per kilogram. The same-month contract on COMEX was down 1.4% at $72.97 per ounce.

 

Prices on the domestic exchange rose due to a sharp rise in the rupee against the dollar. The rupee ended 0.9% higher at 94.9450 against the dollar. Gold and silver prices adjust in the domestic market when the rupee moves against the dollar, as the precious metals are priced in rupee terms.

 

"... gold and silver prices are on track for a weekly loss as uncertainty persisted over progress in US-Iran talks to end the war that's roiled global markets," Nirmal Bang said in a report. On Thursday, the Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon and Israel said it would not withdraw troops from the country, undermining US President Donald Trump's efforts to halt fighting there to forge peace with Tehran. At least 3,526 people have now been killed and 10,733 injured in Israeli strikes on Lebanon since Mar. 2, Al Jazeera reported, citing the country's health ministry as saying.  

 

Hawkish remarks from US Federal Reserve officials also weighed on precious metal prices. Kansas City Federal Reserve President Jeffrey Schmid said on Thursday that the US central bank's choice now is between remaining patient and holding interest rates steady, or hiking rates to reduce inflation that has been above target for years, Reuters reported. The US central bank will meet on Jun. 16–17 and is expected to hold the policy rate steady in the 3.5–3.75% range where it has been since December, Reuters reported. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

 

Meanwhile, India recorded a net monthly outflow of $61 million from gold exchange-traded funds in May, breaking a 12-month streak of inflows after New Delhi hiked import duty on gold last month, the World Gold Council said in a report. 

 

Outlook for the rest of the session:

--MCX gold seen at INR 158,000–INR 161,000 per 10 grams

--COMEX gold seen at $4,470–$4,540 an ounce

--MCX silver seen at INR 258,000-INR 264,500 per kg

--COMEX silver seen at $71.00-$77.00 an ounce

End

 

US$1 = INR 94.95

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

 

Edited by Saji George Titus

 

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