COMEX Gold stayed supported after recent recovery. The commodity fell yesterday as the US Dollar Index soared to a fresh 2 week of 96.50, rising for sixth consecutive session. However, the yellow metal cut losses on signs of steady fund buying though. Weak equities also supported the metal. The COMEX Gold futures currently trade flat at $ 1317.55 per ounce, up 0.25% on the day. MCX Gold futures closed at Rs 33193 per 10 grams, up marginally on the day as the INR hit a fresh one week high of 71 per US dollar in intraday moves.
Gold has been witnessing steady buying as the prospects are looking attractive for the metal after it recently hit a eight month top. Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good as much as an investment, noted the World Gold Council (WGC) in a latest update. Gold has delivered positive returns over the long run, outperforming key asset classes, according to the WGC.
Gold is becoming more mainstream. Since 2001, investment demand for gold worldwide has grown, on average, 15% per year. This has been driven in part by the advent of new ways to access the market, such as physical gold-backed exchange-traded funds (ETFs), but also by the expansion of the middle class in Asia and a renewed focus on effective risk management following the 2008–2009 financial crisis in the US and Europe.