Expect gold prices to trade sideways: Sushil Finance

Sushil Finance's report on Bullion

GOLD

Gold fell 0.6 percent on Wednesday, trading near its lowest in seven months at just over $1,240 an ounce, pulled down by fears that encouraging economic data could prompt the U.S. Federal Reserve to raise interest rates sooner than expected. News Russia had removed the bulk of its forces from Ukraine also dampened safe-haven demand, fueling hopes for peace after a conflict that has taken more than 3,000 lives.

OutlookWe expect gold prices to trade sideways as the expectation that the U.S. Federal Reserve and other central banks would hike interest rates earlier than expected could drag prices and at the same time strong dollar against the Rupee could push prices up.

SILVER

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Silver pared its earlier gains in the later part of the day and closed flat. Investors were anticipating a more hawkish stance on monetary policy from the Fed's Open Market Committee (FOMC) at its next policy meeting on Sept. 16-17, after a study from the San Francisco Fed released on Monday showed that investors underestimated the speed at which the Fed might raise rates.

OutlookWe expect Silver prices to trade sideways as the expectation that the U.S. Federal Reserve and other central banks would hike interest rates earlier than expected could drag prices and at the same time strong dollar against the Rupee could push prices up.

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