Precious Metals Preview: Gold Slips After Nearing Three Month High Yet Again

Gold futures slipped in Asia today amid profit selling as near three month highs continued to trigger correction action. Good economic data from US is keeping a tab on Gold. Philadelphia-area manufacturing activity unexpectedly saw a modestly faster rate of growth in the month of April, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday. The Philly Fed said its diffusion index for current general activity inched up to 23.2 in April. A report released by the Conference Board showed its index of leading U.S. economic indicators increased in line with economist estimates in the month of March. The Conference Board said its leading economic index rose by 0.3%. The yellow metal is currently trading at $ 1345 per ounce, down 0.20% on the day. This should lead to a weak open on local bourses too. MCX Gold futures have been in amazing form this week and closed above Rs 31500 per 10 grams in last session.

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 last 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.