Precious Metals Preview: Continued Stress For Gold Futures

Sentiments remained weak for COMEX Gold after the break under $ 1300 per ounce. The metal slipped near $ 1285 per ounce, marking another fresh five month low amid continued firmness in US dollar and weak Indian demand. Indias Gold imports stood at Rs 16930.91 crore in April 2018, recording a slide of nearly 32% over year. COMEX Gold is currently trading at $ 1286 per ounce, down 0.29% on the day. MCX Gold futures also extended losses and closed at Rs 31100 per 10 grams, up 0.40% on the day. The US dollar index is quoting at 93.75, up 0.20% on the day, consolidating around its 6 month high. US economic cues remain supportive for the currency. The Atlanta Federal Reserves GDPNow model has forecast 4.1% growth for the second quarter, the strongest in nearly four years. Rising US bond yields are also keeping the greenback firm.