According to Sushil Finance, expect gold prices to trade sideways on the back offed chair Yellen’s statements.
Sushil Finance's commodity report on Gold
Gold prices rose on Wednesday, edging further from this week's near four - month low after comments from Federal Reserve Chair Janet Yellen curbed speculation that U.S. interest rates would rise more than once this year. In congressional testimony, Yellen said that given current estimates the Fed would not need to lift rates all that much further to reach a neutral level that neither encourages nor discourages economic activity. The dollar slipped and U.S. Treasury yields fell after Yellen's comments in what may be one of her last appearances before Congress. Immediately after her statement, federal funds futures implied traders saw a 53 percent chance the Fed would raise key overnight borrowing costs at its December meeting, down from 60 percent beforehand, according to CME Group's Fed Watch program. Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non - yielding bullion, while boosting the greenback, in which it is priced. In the major physical markets, Com merz bank said in a note that higher imports into No. 2 consumer India, reported the previous day, could prove to be the last to show such strength for a while.Outlook
We expect gold prices to trade sideways on the back offed chair Yellen’s statements.
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