COMEX Gold edged up from five month low amid a hefty correction in US equities initially. Weak global demand also capped upside for Gold. Uncertainty about the outcome of highly anticipated trade talks between the US and China contributed to the early sell-off on WallStreet yesterday. However, the markets recovered and kept gains limited for Gold. COMEX Gold is currently trading at $ 1313 per ounce, up marginally on the day. MCX Gold futures closed at Rs 31046 per 10 grams with a break above Rs 31000 triggering good buying.
Global Gold demand was at 973.5 tonnes (t) in first quarter of 2018- the lowest Q1 figure since 2008, according to a latest update from the World Gold Council (WGC). This marked a 7% decline over year. The main cause was a fall in investment demand for gold bars and gold-backed ETFs, partly due to range-bound gold prices. Jewellery demand was steady at 487.7t, as growth in China and the US compensated for weaker Indian demand. Central banks bought 116.5t of gold (+42% y-o-y). Technology demand extended its recent upward trend, growing 4% y-o-y to 82.1t. The total supply of gold increased by 3% to 1,063.5t, primarily due to a modest increase in producer hedging. Mine production was fractionally higher at 770t.