Moneycontrol
Mar 10, 2017 12:46 PM IST | Source: Moneycontrol.com

Expect Gold prices to trade negative: Sushil Finance

According to Sushil Finance, We expect gold prices to trade negative on the back of expectations for a U.S. interest rate hike.

Expect Gold prices to trade negative: Sushil Finance

Sushil Finance's commodity report on Gold

Gold fell for the sixth straight session and reached a five-week low on Thursday, with analysts expecting further losses as investors become increasingly certain that U.S. interest rates will rise this month. Strong U.S. economic data and comments by Federal Reserve officials have reinforced expectations of a March U.S. rate hike.


Higher interest rates typically pressure gold prices because they raise the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Investors are awaiting non-farm payrolls data on Friday for further clues on the strength of the U.S. economy after Federal Reserve Chair Janet Yellen said last week that the central bank was poised to lift rates, provided that jobs and inflation data held up.

Her comments were seen as cementing plans for an increase at the Fed's March 14-15 meeting.

Outlook

We expect gold prices to trade negative on the back of expectations for a U.S. interest rate hike.

For all commodities report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
X
Sections
Follow us on
Available On