Gold price bounces back from lower levels on Wednesday, but struggling to sustain on higher levels as U.S. dollar close to four-years highs.
Holdings in SPDR Gold Trust, the world’s top Gold-backed exchange-traded fund, fell 0.12 percent to 724.46 tonnes on Tuesday – a fresh six-years low. This is the fund’s straight six days outflows and shows investor bearish sentiment in Gold. Gold producers are feeling the pinch of lower prices and South Africa’s Anglo Gold Ashanti said that it planing staff cuts through voluntary severances.
In upcoming days, we can expect COMEX Gold December Futures prices to trade on negative note on stronger U. S. dollar as it is near four year high. Technically If COMEX Gold breaks the level of $1140 then it can test the levels of $1120 and $1100 on the downside. If MCX Gold December futures breaks the level of 25150 on downside then movement can be seen till the levels of 24950 and 24720.
By Vivek Gupta, CMT – Director Research, CapitalVia Global Research Ltd.