According to Angel Commodities, expect gold prices to trade lower today as markets price in more than 97 percent change of rate hike in the December meeting.
Angel Commodities' report on Gold
On Wednesday, spot gold prices rose 0.13 percent to close at $1275.6 per ounce after touching a two - week high on Thursday, after Republicans in the U.S. House of Representatives unveiled legislation to overhaul the U.S. tax system. Investors also focused their attention on the nomination of a new U.S. Federal Reserve chair, who could influence the pace of future interest rate increases. Markets are pricing a 97 percent likelihood of a rate increase in December, according the CME Fed watch tool, and the pace of subsequent rises could be faster if the Republican tax proposal was enacted and succeeded in speeding economic growth. On the MCX, gold prices rose marginally by 0.02 percent to close at Rs.29332 per 10 gms.
We expect gold prices to trade lower today as markets price in more than 97 percent change of rate hike in the December meeting. On the MCX, gold prices are expected to trade sideways, international markets are trading higher by 0.09 percent to close at $1276 per ounce.
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