CHICAGO (Bullion Street): Comex Gold prices have started climbing back thanks to increased physicla buying on lower prices although shrinking assets in exchange traded funds casts doubt on a strong rebound in the metals complex.
Comex June Gold is currently traidng at $1427 per ounce after having closed lower at $1408.8/Oz on Tuesday trade. " On daily charts, a recovery is seen with RSI of 35.87 signalling the withdrawal from oversold territory. MACD is still in negative but still below moving average of 1501.10," according to Sreekumar Raghavan, Chief Strategist at Commodity Online Group. US gold futures may face some resistance at $1472 levels before it can climb above $1500, he added.
Spot gold is currently trading at $1426.75 per ounce.
Gold is still 8.8 percent below the $1,561.45 close on April 11, before a two-day, 14 percent drop through April 15. That was the worst slide since 1983. SPDR Gold Trust assets tumbled to 1,097.19 tons yesterday, the lowest in three-and-a- half years, and have dropped 10 percent this month.
The volume for the Shanghai Gold Exchange’s benchmark cash contract exceeded 150 metric tons in the past week, while the U.S. Mint has run out of its smallest American Eagle gold coin. Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, are set for the biggest monthly decline since trading began in 2004, Bloomberg reported.
In India's Multi Commodity Exchange, trading is closed till evening on account of a holiday. MCX June Gold has climbed marginally higher this week to Rs 26164/10 gms compared to close of Rs 26047 per 10gms last week.
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