Precious Metals Preview: Gold Weak, Sentiments Hurt On Local Imports

Gold futures slipped further as the strength in US dollar hurt the sentiments and not much of buying is seen emerging in the yellow metal in light of the recent price destruction. The break under $ 1300 per ounce has caught Gold traders off guard and with the equities marching upwards following the US-China trade war scare, buying is limited in Gold. COMEX Gold is currently trading at $ 1268 per ounce, down marginally on the day. These are the lowest level in seven months for the metal. MCX Gold futures closed at Rs 30630 per 10 grams, down 0.49% on the day. The US dollar index broke above 95 levels yesterday and hit its fresh 11 month high of 95.19 amid a sustained uptick. Domestic Gold imports continued to drop, coming in at Rs 23494 crore, witnessing a drop of 26.45% in May 2018. This has largely weighed on the metal this week.

Meanwhile, large precious metals speculators added to 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 120,240 contracts in the data reported through Tuesday June 12th. This was a weekly rise of 8,824 contracts.