Strong support continues to emerge at the lower levels in the wake of sliding supplies though
COMEX Gold futures are hovering around $940 per ounce right now, with a brief rebound in the mid London trades auguring well for the commodity even as the selling pressure remains on in the with the market participants unloading a heavy stock of the yellow metal given the massive rally in the commodity off late. The current week has seen an extension the buoyancy for the previous metals complex as the persistent worries on the global economic front attracted plenty of buying.
The metal gave away in the early Asian trades today, falling from a high of $946.90 for the April contract on the COMEX as a late recovery in the US markets fuelled moderate gains for the Asian equities and the safe haven buying in yellow metal was restricted. The futures dipped to a low of $934.50 an ounce as the European shares also rose.
However, the contract turned around from these levels and managed to pare some of the intraday losses as investors focused on the physical demand aspect of the commodity to provide support. Earlier in the week, the official data from South Africa suggested revealed today that gold production in South Africa fell by 17.6 percent on a year-on-year basis over the course of December 2008.
Furthermore, the reduction in gold output contributed to the 7.5 percent annual decline in total mining production, which compares to a 0.9 per cent fall in 2007 and is the lowest total since 2000.
COMEX Gold currently trades at $941.10, down $8.10 per ounce while MCX Gold futures are hovering at Rs 14614, down Rs 171 or 1.16% from the previous close with 6.60% decline in the open interest, suggesting traders are cutting back heavily on the back of the sharp gains in the last session.
