According to Sushil Finance, expect gold prices to trade sideways on the back of profit booking after up – move.
Sushil Finance's commodity report on gold
The price of gold rose on Thursday for the third straight day, reaching a two - month high as another exchange of threats by the United States and North Korea prompted investors to buy bullion as a safe - haven asset. North Korea said it was completing plans to fire four intermediate - range missiles over Japan to land near the U.S. Pacific island territory of Guam. Another source of support to bullion was data showing U.S. producer prices unexpectedly fell in July, pointing to a further moderation in inflation that could delay a Federal Reserve interest rate increase. Monthly U.S. inflation readings should rise, even while it takes longer for the annual measures preferred by the Fed to rebound, New York Fed President William Dudley said. The market was waiting f or U.S. consumer inflation data on Friday that would offer more clues about future Fed decisions. UBS said in a note it had increased its long position in gold as forward real interest rates declined and commodity prices increased, while it also added to longs in the platinum group metals as investment demand rose.
OutlookWe expect gold prices to trade sideways on the back of profit booking after up – move.
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