Precious metals preview: Gold largely supported, Indian demand looking up; Dollar index surges half a percent

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Gold futures saw sideways moves in the last session as gains were arrested due to a sharp spike in the US dollar.

Dollar index

The dollar index surged by more than half a per cent to approach near its recent three month high mark and kept gains under check in Gold though the ability of the metal to hold on above $1,800 per ounce ensured that major losses were averted.

COMEX Gold

COMEX Gold currently trades up 0.21% at $1,813 per ounce. Gold traders are also eyeing a continued improvement in India’s economic undertone. India’s cumulative Covid-19 recoveries has exceeded three crore people.

This constitutes an overall recovery rate of 97.22%, which is showing a sustained increasing trend. MCX Gold futures ended at Rs 47,880 per 10 grammes, up 0.22% on the day after hitting a high above Rs 48,000 mark in intraday moves.

The metal has been in a good nick amid soaring global crude oil prices recently and traders are also focusing on prospects of a pickup in Indian retail demand as the Covid-19 curbs are relaxed and consumer spending comes back on track.

COMEX Copper

COMEX Copper futures stayed under stress in the last session, falling under $4.30 per pound as weak Chinese demand concerns weighed on the red metal.

China’s copper imports dropped for a third straight month in June, customs data showed today. Imports of unwrought copper and copper products into China last month were 428,438 tonnes, the General Administration of Customs said.

This marked a drop of around 4% compared to May 2021 and a tumble of nearly 35% compared to 656,483 tonnes in June 2020. The COMEX Copper futures are currently trading down 0.17% at $4.28 per pound. MCX Copper futures ended at Rs 725.50 per kg, down 0.45% on the day.