MCX Gold stayed under check today as the global Gold futures lingered around $1200 per ounce amid choppy moves. The Indian Rupee extended gains and hit a near two month high under 72 per US dollar levels as global crude oil prices fell to one year lows. However, continued selling in local equities capped the upside for the INR and it ended around 72.30 mark, adding modest gains for the day. MCX Gold is quoting at Rs 30689 per 10 grams, down 0.26% on the day as the drop under Rs 31K extended.

Meanwhile, the MCX Crude oil futures also pulled back after rising towards Rs 4100 per barrel levels. Oil dropped as another agency raised worries over the price outlook. MCX oil is currently down 2% at Rs 4022 per barrel. The International Energy Agency (IEA) stated in its latest monthly oil market report that the outlook for global oil demand growth is largely unchanged at 1.3 million barrels per day (mb/d) in 2018 and 1.4 mb/d in 2019, as a weaker economy is largely offset by lower oil prices.

The OECD demand is expected to increase by 355 thousand barrels per day (kb/d) in 2018, slowing to 285 kb/d in 2019. Oil demand is slowing in several non-OECD countries, as the impact of higher year-on-year prices is amplified by currency devaluations and slowing economic activity. The non-OECD demand forecast has been revised down by 165 kb/d for 2019.

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