Strength In Dollar Caps Upmove In Gold

8 Feb 2022 , 02:19 PM

COMEX Gold futures are witnessing some consolidation after a sharp upmove in last session. The yellow metal jumped on upbeat ETF flows data, bouncing to a one week high of $1824 per ounce though firm US dollar is capping the gains thereafter. The World Gold Council (WGC) stated yesterday that Global gold ETFs drew net inflows of 46.3 tonnes (US$2.7 billion, 1.3% of AUM) in January, led by North American funds – partially offsetting the regions 2021 outflows. These combined with positive flows from Europe significantly outweighed Asian outflows. Overall, net inflows were driven largely by gold price strength and a sharp selloff in equity markets, despite a reversal in the gold price on the back of a hawkish US Fed statement towards the end of the month. COMEX Gold futures are currently trading slightly lower at $1819 per ounce. MCX Gold futures are trading flat at Rs 48250 per 10 grams. The US dollar index is approaching near 96 mark as market eyes the upcoming US inflation figures.

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