Gold Holds Steady, Fund Buying Remains Firm

Gold Holds Steady, Fund Buying Remains Firm

Jul 12, 2019 09:07 IST capital market

COMEX Gold futures are holding steady ahead of the weekend as traders took a stock of the recent developments. The fund buying remains good in the metal though a surge in US equities to record highs is curbing the prices after the yellow metal hit a one week high near $1430 per ounce. The metal currently lingers at $1407 per ounce, flat on the day. MCX Gold futures are trading at Rs 34738 per 10 grams, up 0.1% on the day. Some doubts are emerging on local retail demand following the increase in import duties on precious metals.

However, not much of moderation is expected given strong fund buying. Large precious metals speculators continued to add to their bullish net positions in the Gold futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Monday.

The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 258,946 contracts in the data reported through Tuesday July 2nd. This was a weekly surge of 22,392 net contracts. The large speculators boosted their gold bullish bets higher for a fifth straight week and the speculative gold standing is now at the highest level since mid-September 2016.

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