COMEX Gold futures witnessed some bargain buying around their three week low but overall sentiments remained tepid amid a weak technical picture and lack of demand in retail markets in India. However, a spree of terrorist attacks in Europe is likely to keep the safe haven tag in play for Gold. COMEX Gold ended just above $1320 per ounce levels and a sideways pattern is expected to prevail in the commodity in near term. MCX Gold futures topped out above Rs 32000 per 10 grams mark in early July 2016 and dropped near Rs 30700 mark amid sustained selling pressure. Local Gold imports dropped by about 48% to $3.90 billion in the first quarter of the current fiscal, extending their weak run. Gold imports stood at $7.51 billion in April-June 2015. The shipments contracted for a fifth consecutive month in June by 38.5% to $1.20 billion, according to the data by the Commerce Ministry. Silver imports too dipped to $249.39 million in June as against $342.37 million in the same month last year.
The Euro is lingering just above 1.1000 mark against the US dollar- its lowest levels in nearly six weeks. The European Central Bank left interest rates unchanged as expected. In a statement, the ECB said it expected rates to remain at the present or lower levels for an extended period of time, and well past the horizon of the net asset purchases. The central bank also said it was also confirming that monthly asset buys of 80 billion euros a month are intended to run until March 2017. The ECB Chief Mario Draghi noted that the ECB continue to expect interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the central banks net asset purchases.