COMEX Gold stayed supported, rallying 1% in intraday moves on weak equities. The metal has edged up near two month high amid good bargain buying and bright demand outlook this year. The US dollar index dropped half a percent near 100 levels yesterday, keeping Gold afloat. COMEX Gold is currently trading at $1216 per ounce, up marginally on the day. MCX Gold futures closed just above Rs 28800 per 10 grams, up 0.63% on the day after hitting a high above Rs 28850 levels.
Gold swung higher at the start of the year, extending its rally above $1200 per ounce.
However, some selling pressure emerged following recent spurt as profit selling took a toll on the metal. The commodity dropped after the Federal Reserve Chair Janet Yellen stated that she expects rates to rise 'a few times a year' until end of 2019.While the Fed is close to its dual mandate of full employment and price stability, she cannot project the specific timing of another rate hike. The Fed hiked interest rates in December for only the second time in a decade.
Meanwhile, large speculators and traders yet again cut their Gold long positions 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 Comex gold futures, traded by large speculators and hedge funds, totaled a net position of 107,041 contracts in the data reported through January 17th. This was a weekly change of -2,441 contracts from the previous week which had a total of 109,482 net contracts.
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