Precious Metals Preview: Gold Stumbles Under $1270 In Asia

COMEX Gold slipped in Asian trades amid steady equities and continued selling pressure on the yellow metal. Indian Gold imports continued to drop, coming in at Rs 23494 crore, witnessing a drop of 26.45% in May 2018. The confidence of Gold bulls has been shaken to the core after a two percent drop in COMEX futures last 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. 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. The metal dropped to fresh six month lows in Asia today- falling half a percent to $ 1267 per ounce. MCX Gold futures closed at Rs 30779 per 10 grams yesterday – down 0.36% on the day.