COMEX Gold futures extended a break above $1900 per ounce mark as the US Presidential Election looked headed for a nail biting finish. Finally, the US has chosen Democrat Joe Biden as its 46th president after a closely fought battle. This will keep global markets volatile in near term after recent surge in equities. Weakness in the US dollar also boosted the metal and ETF buying stayed strong. COMEX Gold futures hit a seven week high of $1961 per ounce. MCX Gold futures also jumped above Rs 52000 per 10 grams with weakness in the US dollar boosting the metal further. The World Gold Council (WGC) noted that Gold-backed ETFs and similar products (gold ETFs) recorded their 11th consecutive month of net inflows during October, matching the record number of positive monthly flows set in April 2006.
Gold ETF holdings increased by 20.3 tonnes (t), +US$1.4bn or 0.6% of assets under management (AUM), during the month as the gold price moved mostly sideways, finishing slightly below US$1,900/oz. Net inflows of 1,022t (US$57.1bn) in 2020, so far, have driven global gold ETF holdings to a new all-time high of 3,899t (US$235bn in AUM). European funds drove nearly all net inflows as holdings in European funds increased by 20.2t (US$1.4bn, 1.4% AUM). North American funds had inflows of 1.8t (US$166mn, 0.1%). Funds listed in Asia saw holdings rise by 1.1t (US$76mn, 1.0%). Other regions had outflows flows of 2.8t (US$144mn, 3.8%).
Gold prices edged higher in early Asian trade on Monday, propped up by a weaker dollar and hopes of more stimulus measures under U.S. President-elect Joe Biden. Spot gold rose 0.1% to $1,953.45 per ounce. U.S. gold futures rose 0.2% to $1,955.60 per ounce. The dollar index was hovering near a more than two-month low. Biden and his advisers are working on plans to tackle the crises facing a divided America, first and foremost the raging pandemic, a day after the Democrat won enough states to clinch the U.S. presidency. A potentially divided U.S. government with Republicans in control of the Senate may mean a smaller fiscal stimulus package, but that could put the spotlight on the Federal Reserve to do more to revive the economy. Labour Department’s employment report on Friday showed the U.S. economy created the fewest jobs in five months in October and more Americans are working part time. Significant differences remain in talks over a trade deal between Britain and the European Union, both sides said, as they promised to step up efforts to find an agreement. Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.63% to 1,260.30 tonnes on Friday. Speculators cut their net long position in COMEX gold by 9,657 contracts to 121,951 in week to Nov. 3, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. Silver rose 0.5% to $25.72 per ounce.
TREND : WEAK BULLISH
Time : 09/11/2020
Pivot : 1959.61
Technical View : LONG ABOVE 1963.51
Target : 1967.41, 1972.02, 1979.35
Technical View : SHORT BELOW 1957.31
Target : 1955.05, 1947.82, 1943.11