A strong wave of US economic data releases and soaring bond yields hurt Gold sharply this week. The metal slipped under the key $ 1300 per ounce levels to test a fresh five month low mark. Demand outlook for 2018 and a latest update from World Bank also weighed on the metal. Precious metals are expected to climb 3% this year in anticipation of US interest rate increases and higher inflation expectations says the World Bank. The overall outlook for near term is largely tepid following these cues. The metal currently quotes at $ 1291 per ounce- flat on the day. MCX Gold futures closed just around Rs 31k levels and should see a muted action today as well.
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.