Day traders raise bearish bets on gold

MUMBAI: Day traders have been raising bearish bets on gold on domestic commodity exchange MCX on Thursday as international prices struggled to breach the $1,200-an-ounce resistance.

Outstanding trader positions on active December contracts were 7,216 contracts in early noon on Thursday, up from 6,752 contracts on Wednesday.

The rise in open interest coincides with a Rs 134 decline in the gold price to Rs 26,228 per 10 gm.

Rising open interest or outstanding positions accompanied by a decline in price signals creation of sell positions or bearish bets — that prices are expected to fall further.

However, some industry officials, like Ketan Shroff, MD at bullion house Penta Gold, believe that gold might breach the $1,200 an ounce mark to hit $1,210-1,220 before correcting again.