Comex Gold weakens ahead of US data, positive trends in India Gold futures

CHICAGO (Oct 22)  US Gold futures for December delivery has fallen from a recent high of $1328 per ounce to $1314.8/Oz ahead of US non-farm payrolls later in the evening.

The macro-economic backdrop continues to support gold but continued fall in holdings in physically backed gold exchange traded funds continues to cause concern for th bulls, analysts said. Meanwhile, Indian demand is expected to rise to 300 tons in Q4, 2013 and some reports said that present uptrend in prices was the result of bullion shortages rather than a signficant rise in demand.

Holdings in SPDR Gold Trust GLD fell 10.51 tonnes on Monday to 871.72 tonnes, their lowest since Feb. 2009. It was the fund's biggest one-day fall in holdings since early July.

Meanwhile, Spot Gold has fallen to $1313.91 an ounce after ending flat in the previous session.