According to Sushil Finance, We expect gold prices to trade sideways on the back of short covering after drop in prices.
Sushil Finance's report on Gold
Gold rose more than 1 percent on Monday, extending gains as geopolitical risks drove investors to safe - haven assets after the metal's third - straight weekly decline. Saudi Arabia's future king, Crown Prince Mohammed bin Salman, tightened his grip on power through an anti - corruption purge by arresting royals, ministers and investors including billionaire Alwaleed bin Talal who is one of the kingdom's most prominent businessmen. Gold has drifted lower over recent weeks, pulling back 2.5 percent from its mid - October peak as expectations for a Fed interest rate increase were shored up by upbeat U.S. data. Bullion is highly sensitive to rising U.S. rates, as these increase the opportunity cost of holding non - yielding bullion while boosting the dollar, in which it is priced.Outlook
We expect gold prices to trade sideways on the back of short covering after drop in prices.
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