Tight Trades In Gold, 30,000 Still Evades in MCX Futures
Gold is witnessing tight trading today. The COMEX Gold futures drfited lower yesterday, slipping towards $1270 per ounce as steady equities and firm US dollar capped upside for the yellow metal.
Global equities stayed mostly supported yesterday as crude oil prices extended gains to six month highs. Investors also eyed a statement from Bank of England noting that vote for Brexit could cost jobs, raise prices and even lead to recession for the UK.
Reports stating that Indian demand remained lax on the Akshaytritia day also weighed on the market.
However, the overall picture remains bright for the metal after global Gold demand hit 1,290 tonnes (t) Q1 2016, marking a 21% increase year-on-year, making it the second largest quarter on record, according to an update from the World Gold Council (WGC) yesterday.
COMEX Gold is quoting at $1275.20 per ounce right now, up 0.31% on the day right now.
MCX Gold futures almost tested Rs 30000 levels and currently trade at Rs 30021 per 10 grams, up 0.40% on the day.
Meanwhile, the WGC noted yesterday that the spurt in demand was driven by huge inflows into exchange traded funds (ETFs) – 364t – fuelled by concerns around the shifting global economic and financial landscape.
Higher prices and industrial action in India pushed global demand for jewellery down (-19%), while total bar and coin demand was marginally higher (+1%). Central banks remained strong buyers, purchasing 109t in the quarter. Total supply increased 5% to 1,135t.
Hedging by producers (40t) supported an increase of 56t in mine supply, although countered by a marginal decline in recycling.
COMEX Gold futures have recovered this week after testing their 200 week Exponential Moving Average (EMA). The counter dropped from a 15 month high above $1300 per ounce few days back and has been pressed mostly lower thereafter.
However, a test of 200 week EMA around $1260 per ounce mark triggered in fresh buying and the futures edged up. It looks like that the commodity can witness bargain buying as long as $1260 levels stay unviolated.
More will update soon!!
