Comex Gold slips more than 1% as selling pressure continues

18 Apr

US initial jobless claims and continuing jobs claims data are scheduled to be released later today and the outcome may impact the bullion movement slightly.

MUMBAI (Commodity Online): Gold in the international market fell further by more than one percent on persisting selling pressure as investors lost their confidence on health of the global economy.

Investors are withdrawing cash from exchange traded funds (ETFs) there by pulling down gold.

Comex gold futures for June delivery was trading down by 1.41 percent at $1363.25 per troy ounce as of 09.56 AM IST on Thursday.

Gold futures for June delivery on India’s Multi Commodity Exchange (MCX) was trading down by 1% at Rs.25423 per 10 grams as of 10.16 AM IST on Thursday.

Investors are looking for investment other than risk assets after losing confidence on so called ‘safe haven asset’.

“You can see that sentiment is very fragile, very weak. The down trend may not be over and U.S. investors have kept selling over the last two days,” Joyce Liu, an investment analyst at Phillip Futures in Singapore said to Reuters.

“If we continue to see this kind of drop, then maybe the physical buying won’t be sustained because people will think the price is going to go drop further. We may actually see a decrease in physical demand,” Joyce added.

Meanwhile, gold failed to utilize persisting tensions in Korean Pennsylvania and uncertainty over US Federal monetary stimulus.

Other risk assets have also recorded a negative trend as a result of drop in US and European equity market. On Monday, the precious metal recorded its biggest ever daily fall in dollar terms.

US initial jobless claims and continuing jobs claims data are scheduled to be released later today and the outcome may impact the bullion movement slightly.

Silver is also trading negative in the global market. Comex silver for May delivery was down by 0.91 percent at $23.113 per troy ounce as of 10.01 AM IST on Thursday.

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Source: commodityonline

One Response to “Comex Gold slips more than 1% as selling pressure continues”

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