COMEX Gold consolidated around its five week high amid mixed cues from global equities. US Stocks witnessed another relatively lackluster performance before eventually ending the day mixed. The major averages closed on opposite sides of the unchanged line for the second consecutive session.
COMEX Gold is quoting slightly up on the day around $ 1,188 per ounce right now. MCX Gold futures ended around Rs 28,140 per 10 grams as a recent break above Rs 28K continued to act in favor of the metal. However, local buying is yet to pick up in full force and markets would mostly be eyeing cues from global prices.
US dollar is trading flat after coming off its 14 year highs. The Dollar index is lingering just above 102 levels. On the economic front, wholesale inventories in the US increased by slightly more than anticipated in the month of November, according to a report released by the Commerce Department on Tuesday. The report said wholesale inventories surged up by 1 percent in November after edging down by a revised 0.1 percent in October.
Meanwhile, according to a latest update from the World Gold Council (WGC), at the end of December, total holdings in physically-backed gold exchange-traded products (ETPs) stood at 2,142.4t (68.9 moz), down 96.9t or 4.30 percent from November. In value terms, total holdings stood at $ 78.9bn, 7 percent lower from a month earlier. The majority of the decline was borne by funds in North America and Europe, partly owing to a high base effect. Their respective holdings were 1,181.4t and 849.1t, down 6 percent and 3 percent month-on-month.
In North America, SPDR Gold Shares and iShares Gold Trust, the two largest gold ETPs in the world, saw their holdings shrunk by 61.7t (-7 percent) and 6.2t (-3 percent) to 822.2t and 196.2t. In Europe, holding of Source Physical Gold (UK) witnessed the largest decline in the region to 85.4t (-12 percent). Switzerland’s ZKB Gold ETF, once again the largest fund in the region, saw a marginal outflow of 1.2t to 145.5t. Gold holdings in Asia dropped 2.3t to 68.1t. China’s holding slackened further in December: Huaan Yifu Gold ETF and Bosera Gold ETF lost 1.2t and 1.0t, respectively, to 24.1t and 1.6t.
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