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MTECHTIPS:- Gold Off Three Week Highs, Heavy Losses In MCX Silver

MTECHTIPS:- Gold Off Three Week Highs, Heavy Losses In MCX Silver

MCX Gold futures stayed in red today as the yellow metal endured some losses after arun way rally this week. COMEX Gold hit a three week high above $1120 per ounce amid apanic set by the China’s unexpected devaluation of the yuan. China’s central bank devaluedthe Yuan by nearly 2%, allowing the currency to fall to levels last seen in 2011, in an effort to make the country’s exports more competitive. However, the global stock marketsseem to have digested the news as good gains emerged in European and Asian stocks today despite weakness in the Yuan. Indices in Europe are up strongly, adding around 1.5 % – 2%and kept a tab on gold. Gold was also hit by demand worries. Global Gold demand declined to 914.9 tonnes (t) in the second quarter – a 12% year-on-year drop – as consumers faced a number ofchallenges, according to latest Gold Demand Trends from the World Gold Council (WGC).COMEX Gold is quoting at $1117 per ounce, down 0.60% on the day. MCX Gold futures aretrading at Rs 25888 per 10 grams, down 0.48% on the day after closing above Rs 26000 per10 grams mark in the last session. MCX Silver also witnessed heavy losses, currently trading down 0.78% at Rs 35810 per kgas a failure to break above Rs 36000 per kg mark hurt the sentiments. The WGC noted that global Jewellery demand came under pressure from negative consumer sentiment, while investment was undermined by stock market gains and a lacklustre price-environment. On a half-yearly basis, global demand was 6% down at 1998.9 t. The outlook for the second half of the year is more optimistic; there are signs that the recent drop in the gold price has sparked a revival in demand since the end of June.

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