SHRINAM GLOBE COMMODITIES 28/11/2014 COMEX Gold Hovers Around $1190 After Latest Pullback COMEX Gold eased from its latest highs yesterday as a break above $1200 per ouncefailed to extend further and a marginal uptick in US stocks capped the buying momentum inbullion. The metal was seen consolidating around the key $1200 per ounce levels this weekas traders remained cautious about the upcoming Swiss Gold Initiative vote. The commodityedged up last week amid a general feeling that prices have bottomed out after testingtheir weakest levels in four and half years few days back. However, sentiments have turnedaround a bit now with the February 2015 COMEX Gold futures trading at $1191.30 per ounce,down $6.50 per ounce on the day. MCX Gold futures are trading at Rs 26260 per 10 grams,down Rs 102 per 10 grams on the day. Gold eased last night as the S&P 500 and Dow Jones Industrial Average endedslightly higher on Wednesday, scoring yet another record close. Trading on Wall Street wasthin with many participants taking off early for the Thanksgiving holiday. Gold wasundermined by the fact that support for Swiss gold initiative is losing momentum and weakcrude oil prices are making it further difficult for the commodity to witness major buyingsupport in near term. The global crude oil prices have plummeted to four year lows. Swiss National Bank President Thomas Jordan has said the gold initiative is dangerous asit would restrict the monetary policy room for maneuver, acourding to media reports. Theadvocates of the initiative want to increase the role of gold within the currencyreserves, he said in a speech on Sunday. They demand the central bank to hold at least 20percent of its assets in gold, that it sell no more gold and that it store all its gold inSwitzerland. Meanwhile, the US dollar remained well supported, lingering just above 1.2400mark against the Euro on ideas that the ECB would soon act further on quantitativemonetary stimulus to boost flagging economic growth. The aggressive monetary policies implemented by the Bank of Japan (BOJ), EuropeanCentral Bank (BOJ), and the People’s Bank of China (PBoC) have pushed up fund buyingin the yellow metal. Large speculators have increased their bullish bets on Gold at thefastest rate since June in last week. The US Commodity Futures Trading Commission (CFTC)data showed the net-long position in New York futures and options expanded 56%. The shortpositions fell to a two-month low, while long bets climbed for the first time in a month. Meanwhile, India’s gold imports jumped in October amid falling prices andexcellent demand ahead of the peak festive season. Gold imports rose 280% to $4.17 billionfrom $1.09 billion in the year-ago period. This could boost an otherwise lackluster globaldemand scenario. Global Gold demand totalled 929 tonnes in the third quarter this year,which proved to be a generally subdued quarter for the gold market, according to the WorldGold Councils Gold Demand Trends. Demand fell by around 2% compared to third quarter oflast year.
Posted on: Fri, 28 Nov 2014 09:49:56 +0000
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