Precious Metals Preview: Gold Sideways After Recent Upmove

COMEX Gold futures are trading in a mixed manner today as recent highs are being followed by some selling pressure. The commodity is currently trading at $ 1312 per ounce, down marginally on the day. MCX Gold futures closed at Rs 31300 per 10 grams yesterday following the recent break above Rs 31K. 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. Meanwhile, total global physical gold demand increased 10% year-on-year in 2017 to 3,988 tonnes, the first annual increase since 2013, led by an increase in jewellery fabrication. According to GFMS Gold Survey 2018, jewellery fabrication rose 13% on the year to 2,214t, mainly due to a 58% increase in demand from India as the market stocked up before the good and service tax, according to media reports.