According to Sushil Finance, We expect gold prices to trade positive on the back of weak economic data from the US.
Sushil Finance's commodity report on gold
Gold held near its highest in more than a year on Friday as the U.S. dollar dropped and weak economic data lowered expectations of a December interest rate rise in the United States. The U.S. dollar hit a more than 2 - 1/2 - year low against a basket of major rivals on reduced expectations for another Federal Reserve rate increase this year, while the euro hit multi - year highs after European Central Bank President Mario Draghi suggested that the ECB might begin tapering its massive stimulus program this fall. A weaker dollar fuels demand for gold by making it cheaper for holders of other currencies, and lower bond yields reduce the opportunity cost of owning non - yielding bullion. Interest rate rises push up bond yields and boost the dollar. Julius Baer analyst Carsten Menke pinned the rise to the weak dollar and hopes that interest rate rises would be delayed. New York Federal Reserve President William Dudley in a speech on Thursday did not repeat an assertion three weeks ago that he expects to raise rates once more this year. Demand for gold as a safe haven investment was strong as South Korea braced for a possible further missile test by North Korea when it marks its founding anniversary on Saturday.Outlook
We expect gold prices to trade positive on the back of weak economic data from the US.
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