Gold futures witnessed good bargain buying after prices tested near $1200 per ounce – their six month lows. The commodity has been hurt severely over last few days on a massive bout of strength in the US dollar. Traders are worried about the US Fed interest rate hike and near term Indian demand prospects are also lukewarm following the Demonetization moves from the government. However, the $1200 per ounce mark seems to be protecting the downside for the counter and the metal currently quotes at $1215 per ounce, up half a percent on the day. MCX Gold futures are trading at Rs 29100 per 10 grams, up 0.56% on the day. Meanwhile, the sentiments in local Gold futures markets were also bolstered by a falling Indian Rupee. The Indian rupee dropped to about 68.20 per US dollar after falling continuously for last few days. India’s benchmark Sensex index dropped down 1.5% on the day. The Indian Rupee and the local equities are both lingering around their lowest levels in nearly eight months right now. Large speculators and traders sharply cut their net positions in the gold futures markets last week following three straight weeks of rises, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday. The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of 177,660 contracts in the data reported through November 15th. This was a weekly decline of -39,578 contracts from the previous week which had a total of 217,238 net contracts.The gold speculative position fell under the 200,000 net bullish contract level for the first time in three weeks.