Precious Metals Preview: Local Gold Tracks Weak INR

MCX Gold futures gained following a weak Indian Rupee even as the global cues remained tepid. COMEX Gold futures extended recent losses and fell near a fresh seven month low. The metal has extended losses and dropped near $ 1250 per ounce mark today. The MCX Gold futures broke into green and closed at Rs 30670 per 10 grams as the Indian Rupee tested a fresh 19-month low above 68.50 against the US dollar. Local equity markets also slipped sharply.

Large metals speculators dropped 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 96,512 contracts in the data reported through Tuesday June 19th. This was a weekly fall of -23,728 contracts. The speculative gold position has now fallen for four out of the last six weeks now.