Precious Metals Preview: COMEX Gold Lingers Around $1350 Levels

COMEX Gold stayed locked in sideways trade yesterday as a recovery in equities capped the upside. However, firm oil prices and weak US dollar kept the metal around $ 1350 per ounce. The counter recently hit a three month high around $ 1370 per ounce levels. The local Gold futures have been supported by a weak undertone in the Indian Rupee. The benchmark MCX Gold futures closed at Rs 31383 per 10 grams yesterday, witnessing a good intraday pullback though the buying is likely to moderate around the current levels.

Large precious metals speculators continued to trim 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) on Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 155,372 contracts in the data reported through Tuesday April 10th. This was a weekly drop of -11,217 contracts. Speculative positions fell for a second week and have now declined for four out of the past five weeks.