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
Gold rebounded above a six - week low on Thursday, as the dollar turned lower and ushered in short - covering. Bullion was earlier pressured on proposed U.S. tax reforms and strong economic data that supported the case for another U.S. interest rate hike this year. The dollar turned down from a six - week high. Ten - year U.S. Treasury yields steadied after rising to a 2 - 1/2 - month high on expectations of higher U.S. debt and a December interest rate rise push helped by data pointing to underlying strength in the U.S .economy. Higher bond returns reduce the attractiveness of non - yielding bullion. Interest rate increases raise bond yields and tend to boost the dollar. For the second consecutive day, palladium prices rose above platinum, after speculators piled into the market.
We expect gold prices to trade sideways on the back of short covering after drop in prices.
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