COMEX Gold fell from a six week high as equities surged and traders booked profits in yellow metal after a steep spurt that had pulled the commodity up by around $ 50 in last one week. European and Asian stocks advanced after Wall Street rebounded in previous trading session. Market sentiment remained positive throughout the trading session on positive global cues amid reports of trade negotiations between the United States and China, which eased fears of a trade war and improved investors risk appetite. COMEX Gold is currently trading at $ 1341 per ounce as the selling accelerated once $ 1350 levels were broken. MCX Gold futures are currently trading at Rs 30781 per 10 grams, down more than half a percent on the day.
Chinese economic data was steady. Chinas industrial profits rose strongly in the first two months of the year, but the pace of growth eased from last year, data from the National Bureau of Statistics showed Tuesday. Industrial profits gained 16.1% year-over-year in the January to February period. However, the rate of earnings growth decelerated markedly from a 31.5% jump recorded in the same period of 2017. Earnings at state-owned firms surged 29.6% during the period and private firms profits registered an increase of 10%. Global economic cues have been supported over last few weeks and could propel equities higher in coming days after the recent turmoil. Gold can extend the current drop in such a scenario.