Gold prices may remain higher today

SINGAPORE (July 22) This morning, gold prices at the international market are trading at $1313, up 1.65%. CFTC longs have increased by 2.16% in comparison to the shorts, which have increased at a slower pace of 1.81%. This kept gold prices on the higher side. Japan's Prime Minister Shinzo Abe has won the majority of upper house seats in the vote held over the weekend, which increased speculation that it would help the economy to spur growth. This supported a rise in the yen against the dollar and supported gold prices.

The euro is also trading higher by 0.11% due to the positive outcome of the G20 Summit which supported gold prices. Hedge funds raised bets on gold's higher price on the back of the continuation of the monetary stimulus program by the Fed. In Asia, the gains in gold prices could be limited on the back of the rupee's appreciation. Therefore, gold prices might remain higher in today's session.