Precious Metals Preview: Gold Lingers Under $1300 Mark

Gold dropped yesterday, giving up some of its recent gains after US President Donald Trump said a US team had arrived in North Korea to prepare for a proposed summit between him and North Korean leader Kim Jong Un, which Trump pulled out of last week before reconsidering. The possibility of real talks between the two nations hit the Gold market and steady rise in global equities also hurt the appetite for the yellow metal. COMEX Gold slipped under the key $ 1300 per ounce mark and currently trade at $ 1297 per ounce, down 0.48% on the day. MCX Gold futures closed at Rs 30960 per 10 grams, down 0.73% on the day. This break under Rs 31000 levels is likely to weigh on the counter now.

Meanwhile, large precious metals speculators continued to trim their bullish net positions in the Gold futures markets last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 90,957 contracts in the data reported through Tuesday May 22nd. This was a weekly drop of -1,486 contracts. Speculators have been cutting their gold positions sharply over the past few months. Gold long positions have now declined for four out of the past five weeks and their level currently stands at lowest in around ten months.