Expect Gold to trade negative: Sushil Finance
According to Sushil Finance, expect gold prices to trade negative on the back of relief from North Korea’s Missile tests.
Sushil Finance's commodity report on gold
Gold fell to a 1 - 1/2 - week low on Wednesday, erasing earlier gains as the dollar index jumped, though a retreat in global stocks after Tuesday's record high prevented deeper losses. A firmer dollar makes gold more expensive for holders of other currencies. Concerns over North Korea's nuclear ambitions were a key factor driving spot gold prices to 13 - month highs last week at $1,357.54 an ounce. An easing of those worries helped lift equities to record highs early this week. Demand for gold, seen as a safe investment in uncertain times, revived earlier after U.S. President Donald Trump pledged stronger measures against North Korea and Pyongyang promised to fight off what it said was the threat of a U.S. invasion. Investors in gold - backed exchange - traded funds were buying as prices fell. Holdings of the largest gold - backed ETF, New York's SPDR Gold Trust, rose 0.35 percent on Tuesday from Monday. Investors awaited U.S. consumer inflation data due on Thursday, which should give further clues about the pace of U.S. interest rate increases. A run of weak inflation readings has lowered expectations the Federal Reserve will raise rates in December.Outlook
We expect gold prices to trade negative on the back of relief from North Korea’s Missile tests.
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