Precious Metals Preview: Gold Tests One Week Low Before Witnessing Recovery

Precious Metals Preview: Gold Tests One Week Low Before Witnessing Recovery

Sep 18, 2020 08:09 IST capital market

COMEX Gold fell sharply amid sustained selling pressure in last session. The metal tested one week low under $1940 per ounce before some buying emerged on flat moves in US equities and Covid-19 worries. World Health Organization on Thursday warned that Europe is bracing for a very serious situation regarding the coronavirus, as it is going to transmit at alarming rates across the continent. This cut losses in Gold and the metal currently trades at $1959 per ounce, up 0.50% on the day. MCX Gold ended at Rs 51468 per 10 grams, down 0.70% on the day after testing low near Rs 51180 mark.

Fund buying is active in Gold at lower levels, latest price action suggests. Large precious metals speculators continued to increase their net long positions further in the Gold futures markets last week after recent drop, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on last Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 236473 contracts in the data reported through September 7th 2020. This was a weekly gain of 5677 net contracts. The net long positions are now at a one month high.

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