Precious Metals Preview: Gold sees limited gains as dollar index breaks above 100 mark

COMEX Gold futures edged up a bit after correcting heavily in last session. Gold melted in tune with other metals as the US dollar index soared and a break under $4000 per ounce triggered a 1.30% cut in the futures. A modest pullback was seen in the counter today as it quotes at $3976 per ounce, up 0.39% on the day. However, following the slide from all-time highs, the overall sentiments are turning cautious for the metal from a near term perspective. Global trade cues are also turning positive as China noted that it will suspend its 24% additional tariff on US goods for one year while retaining a 10% duty. The US dollar index has edged up above 100 mark and is currently holding at five-month high. This can cap advances in Gold. MCX Gold futures ended at Rs 119749 per 10 grams, down marginally on the day after failing to sustain around Rs 121000 mark. The counter can edge up amid supportive global cues today but overall action is expected to be sideways.

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