Rise In Rupee Hurts Local Gold Futures

MCX Gold futures slipped today as strength in the Indian Rupee clubbed with profit selling ahead of the weekend capped the upside in the prices. However, COMEX Gold hit a one and half week high near $ 1306 per ounce. The MCX futures gained in local markets recently following the recent break above Rs 31000 per 10 grams and a recovery in global prices. COMEX Gold edged up above $ 1300 per ounce levels, extending a gain from five month low. MCX Gold futures are currently trading at Rs 31290 per 10 grams, down 0.58% on the day. The Indian Rupee gained for a second session today, backing off its 18 month low. Domestic equity market continued its upward march in mid-afternoon trade, backed by strength in IT, banks and metal shares. The local currency gained nearly 0.70% to break under 68 mark.

Large metals speculators continued to trim their bullish net positions in the Gold futures markets last week, according to the 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 92,443 contracts in the data reported through Tuesday May 15th. This was a weekly drop of -14,997 contracts from the previous week. Speculative bullish positions have declined for three out of the past four weeks.