Gold Jumps On Frail Dollar, Local Futures Above Rs 31K

COMEX Gold saw good gains today amid broad dollar weakness and signs of steady fund buying. US dollar index fell for a fourth consecutive session today to test its lowest mark in around two weeks. Dollar was hurt yesterday after European Central Bank (ECB) chief economist, Peter Praet, indicated that the central bank could be approaching end to its quantitative easing program. The index is currently quoting around 93.30 levels. COMEX Gold is hovering at $ 1305 per ounce, up 0.30% on the day. MCX Gold futures also gained impressively, breaking above Rs 31000 per 10 grams and currently trade at Rs 31122 per 10 grams, up 0.85% on the day.

Global gold-backed ETF holdings added 15 tonnes to 2,484t in May, according to a latest update from the World Gold Council (WGC). Europe and Asia drove inflows as European funds have responded strongly in the past two months. North American fund flows reversed their early 2018 trend as they lost 2.3% of assets, likely a result of the volatile prices in the gold market which left gold lower by 60bps (in dollar terms) on the month.