Hedge funds cut bullish bets on gold futures and options over the past week at its lowest level in nearly four months, a record for U.S. equities fell haven appeal of gold, according to the Commodity Futures Trading Commission on Monday.
Gold slipped to its lowest level in nearly four months on Friday and was on track for its biggest weekly fall within two months as a string of record closes in equity markets and declining demand in Asia weighed on gold prices.
Spot gold fell nearly 1 percent to $ 1,246 an ounce, an all time low level since early February. Gold futures for August delivery traded at 1,245.40 a troy ounce during U.S. trading, down 0.93%, up from a session low of $1,242.50 and off a high of $1,260.60.
Dealers noted that bullion traveled on technically significant "death cross", the term for when the 50-day SMA of an active falls through its 200-day average.
Commodity Futures Trading Commission reports showed, speculators cut their net long positions in gold by 21,965 contracts to 68,393 lots, the lowest level since the week of February 16.
As the U.S. economy continues to recover and is in less need of monetary support from the Federal Reserve and a rally in the US S&P 500 index to a record high above 1,900 points decreased bullion's appeal as a hedge against economic uncertainty, traders said.
Bullion is hovering close to a fresh 16-week settlement such as pressure remains after making strong gains earlier in the week.
Still, gold disregarded the data because the U.S. economy is still recovering, which will direct attention of the investors to equities and base metals.
KheloMCX Commodity Advisory Services is offers best Gold, Silver, Crude recommendation in MCX & NCDEX Commodity Exchanges of India. Khow more about our company profile visit here and Follow us on Twitter @KheloMCX.
Gold slipped to its lowest level in nearly four months on Friday and was on track for its biggest weekly fall within two months as a string of record closes in equity markets and declining demand in Asia weighed on gold prices.
Spot gold fell nearly 1 percent to $ 1,246 an ounce, an all time low level since early February. Gold futures for August delivery traded at 1,245.40 a troy ounce during U.S. trading, down 0.93%, up from a session low of $1,242.50 and off a high of $1,260.60.
Dealers noted that bullion traveled on technically significant "death cross", the term for when the 50-day SMA of an active falls through its 200-day average.
Commodity Futures Trading Commission reports showed, speculators cut their net long positions in gold by 21,965 contracts to 68,393 lots, the lowest level since the week of February 16.
As the U.S. economy continues to recover and is in less need of monetary support from the Federal Reserve and a rally in the US S&P 500 index to a record high above 1,900 points decreased bullion's appeal as a hedge against economic uncertainty, traders said.
Bullion is hovering close to a fresh 16-week settlement such as pressure remains after making strong gains earlier in the week.
Still, gold disregarded the data because the U.S. economy is still recovering, which will direct attention of the investors to equities and base metals.
KheloMCX Commodity Advisory Services is offers best Gold, Silver, Crude recommendation in MCX & NCDEX Commodity Exchanges of India. Khow more about our company profile visit here and Follow us on Twitter @KheloMCX.