Gold Extends Losing Spell After Breaking Under $1800 Per Ounce

Published on Feb 18, 2021 14:56

COMEX Gold futures tanked as a slide under $1800 per ounce intensified amid broad weakness in the commodity over last few sessions. Firm movement in the US dollar index, which edged up near 91 mark also hurt the metal. Buying has been almost absent in the metal and futures have refused to look at the possible resurgence in Indian buying as spot prices toppled near an eight month low of around Rs 46500 per 10 grams mark. The Covid-19 spread is gradually easing in the US and vaccinations are continuing at a rapid pace. Meanwhile, the Joe Biden administration announced on Wednesday a new effort to ramp up this work, pledging nearly $200 million in federal funding to better identify the new strains of the COVID-19. It seems that the cut in customs duty on gold in the latest Union Budget in India will drive the sentiments in near term, keeping a check on prices even as factors like ultra-low interest rates and elevated commodity prices offer a good backdrop for bullish Gold prices. COMEX Gold fell around 1.5% to $1770 per ounce, testing two and half month low yesterday.