Gold Seen Struggling After Recent Meltdown

Gold witnessed some bargain hunting today following the massive correction in last session as near six month lows offered some support to the yellow metal. A continued wave of selling pressure in Bitcoin futures also helped the yellow metal and the commodity is currently trading at $ 1283.20 per ounce, up 0.37% on the day. MCX Gold futures are currently trading at Rs 30986 per 10 grams, almost unchanged on the day. The confidence of Gold bulls has been shaken to the core after a two percent drop in COMEX futures on Friday as a confluence of factors like strength in US dollar and weak technical cues led to a massive onslaught. COMEX Gold futures took a hefty tumble Friday as a break below $ 1300 per ounce hurt the sentiments for the yellow metal. Strength in US economy and dollar post the US Fed interest rate hike has been negative for Gold. US dollar index is currently up marginally to quote at 94.50 levels after hitting its seven month high above 95 mark in last session. Economic data has been supportive for the US currency. A report released by the University of Michigan on Friday showed a much bigger than expected improvement in US consumer sentiment. The report said the preliminary reading on the consumer sentiment index for June came in at 99.3 compared to the final May reading of 98.0.