Gold futures are trading mildly lower in Asia trades today as investors took profits after yesterday solid run up in the metal. However the metal is holding above $1700 level as it is largely being influenced by the movement in stock market.
Investors have become more optimistic about the region after reports European officials have made some progress in reining in sovereign-debt crisis and arriving at a plan for their bailout fund.
COMEX December gold is trading down $2 at $1715 levels in electronic session today. Yesterday it rose $25.10, or 1.5%, to settle at $1,710.80 an ounce on the Comex division of the New York Mercantile Exchange. That was the metal's best settlement since Nov. 18.
Money managers pared their holdings of Comex gold and silver futures and options in the week ended Nov. 22, according to data released Monday by the Commodity Futures Trading Commission. The CFTC data, typically released Friday, were delayed because of the Thanksgiving holiday.
In gold futures and options, managed funds cut 21,697 long positions, or bets prices will rise, and added 679 short positions, or bets prices will fall. This reduced their net position by 13% to 149,256 long contracts, from 171,632 long contracts a week earlier. The managed fund net long position represents around 14.9 million troy ounces of gold.
MCX benchmark gold futures are trading down over Rs. 50 at Rs. 28688 per 10 grams. If the counter breaks above Rs. 28700 levels it may rise towards 28900 levels. The Indian rupee remained relatively steady on Tuesday, 29 November 2011, opening only 5 paise lower at Rs. 52 per dollar as compared to yesterday's close at 51.95/96.
