Gold edged up in Asia after retracting from two and half year highs above $1360 per ounce levels. Weak Indian imports and an overall thin demand in global futures markets following a wild rally in the metal over last few weeks has been keeping upside limited. The safe haven edge is holding up though as a rise in global terror threats following a series of militant attacks in Bagdad is supporting the metal. The commodity quotes at $1345 per ounce, up half a percent on the day. MCX Gold futures ended just under Rs 31800 per 10 grams mark yesterday and could see a slightly depressive movement in early moves as markets try to price in the late correction in global Gold market.
Local Gold imports dropped around 51% to $2.7 billion (approximately Rs 17,962.4 crore) in April-May this fiscal. Gold imports stood at $5.55 billion (approximately Rs 36,922.8 crore) in April-May 2015. The in-bound shipments contracted for the fourth consecutive month in May by 39.14% at $1.47 billion, according to Commerce Ministry data.
Meanwhile, Gold speculator and large futures traders continued to add to their gold bullish positions higher last week for a fourth consecutive week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +301,920 contracts in the data reported through June 28th. This was a weekly change of +9,191 contracts from the previous week’s total of +292,729 net contracts that was registered on June 21st