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MTECHTIPS:-Precious Metals Preview: Gold Stuck Near Five And Half Year Low

MTECHTIPS:-Precious Metals Preview: Gold Stuck Near Five And Half Year Low

COMEX Gold continues to drop as traders turned their back towards the metal after the failure of the commodity to break above $1100 per ounce. The US dollar eased swiftly and helped Gold launch an amazing turnaround from its five and half year lows near $1080 per ounce on Friday. However, gold yet again eased from highs near $1100 yesterday and extended the losses in Asian trades today. The commodity is quoting at $1083 per ounce right now, down 0.60% on the day. MCX Gold futures for October fell under Rs 25000 per 10 grams mark and tested a low under Rs 24900 levels before edging up slightly. The counter is expected to track weakness in global markets and can drag towards Rs 24800 mark in intraday moves. COMEX Gold stayed under stress last week after the US real gross domestic product increased at an annual rate of 2.3% in the second quarter compared to expectations for an increase of about 2.6%. Markets remained focused on a rate hike from the US Fed in September after the data as the US Commerce Department also revealed a notable upward revision to the data for the first quarter. The first quarter GDP rose by an upwardly revised 0.6% compared to the 0.2% contraction that had been reported. Weak physical demand in global markets is keeping the sentiments under check after a latest update from GFMS stated that Global physical gold demand was at its weakest since 2009. Global physical gold demand was at its weakest since 2009, down 14% year-on-year in the second quarter as few markets report increases and Chinese buyers stayed
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