Weekly Gold Review: COMEX futures soften after hitting $2800 mark

COMEX Gold futures are consolidating after easing after hitting record high of $2800 per ounce in last week. Overall sentiments remain supported for the metal after recent spike as geopolitical climate is challenging and continues to support the commodity. Gold is up around 34% this year amid sustained policy uncertainty, good demand from central banks and worries over geopolitical clashes. Fed cutting rates for the first time in four years has propelled the metal into a whole new trajectory in last month as a spike in US dollar index and rising US yields has had no major impact on the metal.

The World Gold Council's Q3 2024 report reveals a 5% year-on-year rise in total gold demand, reaching a record 1,313 tonnes and crossing the $100 billion mark for the first time. Global investment demand surged by over 100%, driven by Western interest in gold ETFs, which gained 95 tonnes, marking their first positive quarter since early 2022.

Although bar and coin demand dipped 9%, year-to-date totals remain above the decade average at 859 tonnes. Central bank demand softened but remained steady at 186 tonnes, in line with 2022 levels. World Gold Council or WGC stated in a latest quarterly update today that total gold supply grew by 5% y/y to a record 1,313 tonnes in September quarter. Mine production grew 6% y/y to another quarterly record and y-t-d output has eclipsed the 2018 prior high.

MCX Gold futures neared Rs 80000 per 10 grams before witnessing moderation. Market will be eying tends in local retail space post festive season now.

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