COMEX Gold is quoting slightly up on the day around $1188 per ounce right now. US dollar is trading flat after coming off its 14 year highs. The Dollar index is lingering just above 102 levels. The overall undertone was steady as investors awaited a press conference by US President-elect Donald Trump later in the day. MCX Gold futures are trading at Rs 28260 per 10 grams, up 0.41% on the day as a recent break above Rs 28K continued to act in favor of the metal.
The World Bank lowered its global growth projections as rising trade protection could have adverse effects after the US President elect Donald Trump takes office this month. According to the Global Economic Prospects report of the World Bank, the global economy will grow 2.7% this year instead of 2.8% projected in June last year. Going forward, growth was expected to be 2.9% each in 2018 and 2019.
Meanwhile, according to a latest update from the World Gold Council (WGC), at the end of December, total holdings in physically-backed gold exchange-traded products (ETPs) stood at 2,142.4t (68.9 moz), down 96.9t or 4.30% from November. In value terms, total holdings stood at US$78.9bn, 7% lower from a month earlier. The majority of the decline was borne by funds in North America and Europe, partly owing to a high base effect. Their respective holdings were 1,181.4t and 849.1t, down 6% and 3% month-on-month.
In North America, SPDR Gold Shares and iShares Gold Trust, the two largest gold ETPs in the world, saw their holdings shrunk by 61.7t (-7%) and 6.2t (-3%) to 822.2t and 196.2t. In Europe, holding of Source Physical Gold (UK) witnessed the largest decline in the region to 85.4t (-12%). Switzerland’s ZKB Gold ETF, once again the largest fund in the region, saw a marginal outflow of 1.2t to 145.5t. Gold holdings in Asia dropped 2.3t to 68.1t.
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