Moneycontrol
Sep 15, 2017 12:37 PM IST | Source: Moneycontrol.com

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 rebounded from a two - week low on Thursday as North Korea threatened the United States and Japan, and the dollar softened despite strong U.S. consumer inflation data, which could allow further interest rate increases from the Federal Reserve. A North  Korean state agency threatened to use nuclear weapons to  "sink" Japan and reduce the United States to "ashes and darkness" for  supporting a U.N. Security Council resolution and sanctions over its latest  nuclear test. The Fed has a 2 percent inflation target, and a series of subdued inflation readings have dampened expectations for further rate rises in the near term. Although in the longer run a more inflationary environment could support gold demand, both a stronger dollar and higher rates would probably weigh on the metal in the near term.

Outlook
We expect gold prices to trade negative on the back of relief from North Korea’s Missile tests.

For all commodities report, click here


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