Gold stayed supported on rising commodity prices and stabilised just under its 11 month high. The metal has witnessed some selling pressure at the current levels on strong US economic data and soaring values of virtual currencies like the Bitcoin.
COMEX Gold futures closed just under the $1230 per ounce levels. MCX Gold futures hit highs above Rs 29900 per 10 grams and ended around Rs 29800 per 10 gram levels.
US economic activity expanded by more than previously estimated in the second quarter. The Commerce Department said gross domestic product jumped by 3 percent in the second quarter compared to the previously estimated 2.6 percent. The job growth in the US came in well below market estimates in the month of August, according to a closely watched report released by the Labor Department on Friday. The Labor Department said non-farm payroll payrolls came in 156,000 in August. The report also said the job growth in June and July was downwardly revised to 210,000 jobs and 189,000 jobs.
Activity in the US manufacturing sector expanded faster than estimated in the month of August, the Institute for Supply Management (ISM) revealed in a report on Friday. The ISM said its purchasing managers index rose to 58.8 in August from 56.3 in July, with a reading above 50 indicating growth in the manufacturing sector. The bigger than expected increase pushed the index to its highest level since reaching 59.1 in April of 2011.
COMEX Gold soared after successfully breaching the key $1300 per ounce level, and hit an 11 month high as weak US dollar, continued geopolitical worries and sound speculative demand boosted the yellow metal. Dollar index that hit a 15-month low around 92 mark while the Euro soared to a two and half year high above 1.1900 against the US dollar. Large speculators added to their bullish net positions in the gold futures markets yet again last week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC).
The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 208,438 contracts in the data reported through Tuesday August 22nd. This was a weekly spurt of 20,704 contracts from the previous week. Gold speculative positions have now gained for five straight weeks and hit a two and half month high.
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