14-Dec-2024 15:10

COMEX Gold futures after hitting five week high amid firm US dollar and sustained selling pressure as the year end approached and investors refrained from initiating large scaled positions. The counter saw hefty losses and fell near $100 per ounce in two sessions, breaking well under $2700 per ounce mark and closing the week around $2660 per ounce. Dovish moves by global central banks, including cuts by the SNB, ECB, and BoC, along with the BoJ's cautious stance is likely supportive for the metal but excess gains in recent months are now capping the upside. Meanwhile, the World Gold Council or WGC stated in a latest update that Gold is poised for its best annual performance in more than a decade ' up 28% through November. Behind this, central bank and investor buying have more than offset a notable deceleration in consumer demand. Asian investors have been a near constant presence, while lower yields and a weakening US dollar in Q3 fueled Western investment flows. However, it is gold's role as a hedge amidst rising market volatility and geopolitical risk that most likely explains its remarkable performance. It opined that the market consensus of key macro variables such as GDP, yields and inflation ' if taken at face value ' suggests a positive but much more modest growth for gold in 2025. MCX Gold futures ended the week around Rs 77130 per 10 grams, marking a swift decline after testing highs above Rs 79000 per 10 grams.

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