COMEX Gold slipped in Asia, falling more than half a percent as weak demand conditions and strength in US dollar hurt the metal. The counter is currently trading at $ 1307 per ounce, down 0.50% on the day. MCX Gold futures closed at Rs 31210 per 10 grams yesterday following the recent break above Rs 31K. Sentiments appear mixed though the tepid global demand figures are expected to weigh on the metal in near term. The failure of Gold to rise in tandem with crude oil in recent weeks is also an indication that the inflationary worries are not acting in favor of the metal right now.
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.