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 on Tuesday rose above a seven - week low as the U.S. dollar came off its highs. Bullion was pressured earlier by strong U.S. economic data that reinforced expectations of another U.S. interest rate increase this year and pushed the dollar and U.S. bond yields higher. Gold had earlier touched $1,267.76, its lowest since Aug. 15 and down more than 6 percent from a one - year high of $1,357.54 in early September. The CME's Fed watch indicator showed markets were pricing in a 77 percent likelihood of a December rate rise after Monday's data showed a surge in U.S. manufacturing activity. U.S. and world stocks also rose to records as a positive global growth outlook encouraged investment in riskier assets.Outlook
We expect gold prices to trade sideways on the back of short covering after drop in prices.
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