Gold Gallops Near $1340 Levels

Strong speculative demand, firm crude oil prices and renewed global trade war fears supported Gold today. The metal is currently trading at $ 1337 per ounce, up 0.75% on the day after a retreat in last week. Buying stayed firm after China imposed tariffs on a range of US goods, to retaliate against the Trump administrations penalties on imports of Chinese steel and aluminum. MCX Gold futures also edged up and currently trade at Rs 30713 per 10 grams, up 0.53% on the day.

Large metals speculators sharply increased their bullish net positions in the Gold futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 203,354 contracts in the data reported through Tuesday March 27th. This was a weekly surge of 54,623 contracts. With this spurt, the speculative long positions have reversed their recent slide. Overall speculator positions are now at the highest bullish position in nearly two months.