Precious Metals Preview: Safe Haven Buying Boosts Sentiments For Gold

Gold pulled back as traders booked some profits. Prices have been under pressure after hitting near three month top. MCX Gold futures hit highs above Rs 31000 per 10 grams following the global cues. COMEX Gold soared following global worries, a spurt in crude oil prices and continued buying support after recent recovery. The metal is expected to be supported as USled Western Forces have hit Syria with air strikes. The metal broke above $ 1350 levels after Saudi Arabia said it intercepted a ballistic missile over Riyadh and shot down two drones in another part of the country following the latest attacks by pro-Iranian Yemeni rebels. A heavy conflict between the United States and Russia in Syria following the recent gas attack in Syria also boosted sentiments. Brent oil prices hit near three year highs, ensuring that Gold stays buoyant. However, broad demand worries seem to be capping buying interest in the metal now. Global Gold demand will change little this year from 2017 levels as slim gains in physical investment and jewellery and industrial demand are partially offset by a drop in central bank buying to its lowest since 2010, according to an update from Metals Focus, noted media reports recently. Global gold demand is seen at 3,969 tonnes in 2018, up 1% from last years levels but some 10% below the average for the last five years.