Gold Dips On Profit Selling, Strong Green Back

Gold futures edged lower in range bound trade on Thursday, with investors hesitant to extend the previous session's strong gains as bearish chart signals remained intact. The Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at $1,469.15 a troy ounce, down 0.3% on the day. Comex gold prices held in tight trading range between $1,467.55 a troy ounce, the daily low and a session high of $1,474.85 a troy ounce. Euro was quoting at $1.31, down 0.08% from last close. Global equities are in mixed trend with majority are marginally in red while commodities also shows same line of trend with copper and crude are down. Meanwhile, COMEX July silver quotes at $24.07, up 0.39% from last close. Gold futures rose more than 1.5% on Wednesday to hit a high of $1,475.55 a troy ounce, amid indications of surging demand for the precious metal in China, the world's second largest gold consumer. However, investors were hesitant to enter the market as the precious metal continued to trade below the key psychological $1,500-level, indicating chart signals remain bearish.
The demand for the metal from retail quarters has been soaring following a massive crash in prices during the middle of last month. Demand for gold coins and bars from India and China, the top two consumers have been highly impressive over the last few weeks. The crash in gold prices was triggered by speculative traders operating in the futures markets, according to an update from the WGC.
Chinese gold imports are likely to swell further after more than doubling to an all-time high in March as retail consumers pounced when prices plunged to a two-year low last month. China is the world's second largest buyer after India, and in both countries the steep fall in international gold prices in April unleashed years of pent up demand for coins, bars and jewellery. That will help bolster prices for the metal, which has been abandoned by funds in other parts of the world in the wake of its historic fall. “Physical demand picked up significantly over the last couple of weeks. Consumers and industrial users tend to see price drops as buying opportunities,” Zhang Bingnan, secretary-general of the China Gold Association.
Local gold futures failed to sustain Rs 27,200 mark level for the benchmark June Gold on MCX. Weak rupee which trades at above Rs 54.24 mark, up 0.17% from last close, limited the steep fall in the prices. MCX June Gold quotes at Rs 27,120, up Rs 26 from last close. Local gold futures may find support at Rs 27,000, Rs 26,900 and resistance at Rs 27,240, Rs 27,300 level. Silver futures are trading higher following their global trends, July Silver contract trades at Rs 45,275, up Rs 361 or 0.80% from last close.