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.
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