Gold Remains Under Stress, Hovers Around Five Month Low

Sentiments remained weak for COMEX Gold after the break under $ 1300 per ounce. The metal slipped near $ 1285 per ounce today, marking another fresh five month low amid continued firmness in US dollar. Large metals speculators slightly increased their bullish net positions in the Gold futures markets last week after two down weeks, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC). The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 107,440 contracts in the data reported through Tuesday May 8th. This was a weekly rise of 661 contracts from the previous week. Speculative positions had dropped sharply in the previous two weeks before this small increase. It is very much likely that the recent week would have seen resumption is selling by speculators and unless the prices are back above $ 1300 levels, the fund buying is expected to be lax. COMEX Gold is currently trading at $ 1286 per ounce, down 0.26% on the day. MCX Gold futures also extended losses and quote at Rs 30985 per 10 grams, almost unchanged on the day.