MCX Gold Fails To Hold Near 27200 Mark

Gold.......

MCX Gold slipped from highs near Rs 27200 per 10 grams today, giving up some of the latest gains on profit selling. The yellow metal continued to face selling pressure above $1470 per ounce levels and was pulled lower amid a mixed movement in global equities. Prices had stabilized around their two and half week high yesterday amid supportive cues from other commodities like crude oil and copper. However, the metal edged lower in Asia, breaking under $1470 per ounce and currently trades at $1469.30, down $4.40 per ounce on the day. Yesterday, the Dow Jones industrial average closed up 48.92 points to a fresh high of 15,105.12. Copper, one of the commodities tied most closely to global growth prospects, jumped to a three-week high around $7500 per tonne while WTI crude also jumped near its five week highs. This ensured that Gold remains supported after falling towards $1440 per ounce earlier in the week. Further, the demand for the metal from retail quarters has been soaring following a massive crash in prices during the middle of last month. Demand for gold coins and bars from India and China, the top two consumers have been highly impressive over the last few weeks. The crash in gold prices was triggered by speculative traders operating in the futures markets, according to an update from the WGC. This short-term view of generating a trading profit is in stark contrast with the views of long-term investors, as evidenced by the massive wave of physical gold-buying that accelerated as prices tanked to multi-year low. The latest trade data from China has been a supportive factor for the commodity. Dollar has not been a great influence though, moving in a tight range around 1.3100-1.3200 levels against the Euro. The MCX Gold futures rose to a high of Rs 27188 per 10 grams and then fell in a hurried manner. The counter dropped around 100 rupees from these levels and currently trades at Rs 27105, up Rs 12 per 10 grams on the day with 4.80% increase in the open interest. Source by Commodity Insights