Precious Metals Preview: Gold Extends Drop After Falling Under $1200 Mark

Precious Metals Preview: Gold Extends Drop After Falling Under $1200 Mark

Aug 24, 2018 04:08 IST capital market

COMEX Gold futures stayed slippery after hitting near one week high as the US Federal Reserve officials at their last meeting indicated that they were likely to raise interest rates next month and expressed more concerns than before that prolonged trade disputes could disrupt economic growth. US dollar index has gained following the Fed minutes and COMEX Gold extended losses under $1200 levels. The metal currently trades at $1194 per ounce - down marginally on the dayi. MCX GOLD futures closed at Rs 29613 per 10 grams, down 0.22% on the day. Local Gold saw its losses curtailed due to the weakness in Indian Rupee. The Indian Rupee stayed under pressure even as the local equities hit record high as soaring crude oil prices and strength in dollar overseas hurt the sentiments.

Weak fund buyng has been a key factor hurting Gold markets recently. Large precious metals speculators continued to sharply trim their net positions in the Gold futures markets again this week to a new bearish level, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of -3,688 contracts in the data reported through Tuesday August 14th. This was a weekly tumble of -16,376 contracts.

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