According to Sushil Finance, expect gold prices to trade sideways on the back of short covering after drop in prices.
Sushil Finance's commodity report on Gold
Heightened expectations that the U.S. Federal Reserve will raise interest rates again this year drove gold to a one - month low on Wednesday, extending losses after the biggest one - day loss in almost two years during the previous session. Markets are pricing in a 76 percent chance the Fed will raise borrowing costs in December, compared with less than 20 percent only a month ago. Gold is highly sensitive to rising U.S. interest rates, as they increase the opportunity cost of holding non - yielding bullion versus the dollar. U.S. stocks pared gains Wednesday after U.S. President Donald Trump's administration called for slashing tax rates.Outlook
We expect gold prices to trade sideways on the back of short covering after drop in prices.
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