According to Sushil Finance, expect gold prices to trade sideways on the back of profit booking after up - move in prices.
Sushil Finance's commodity report on gold
Gold prices edged higher to a more than two - week high on Thursday as focus shifted to U.S inflation figures due on Friday which are expected to give more clues on monetary policy. Minutes from a U.S. Federal Reserve September meeting showed policymakers had a prolonged debate about prospects of a pick - up in inflation and slowing the path of future interest rate rises if it did not. The dollar inched up after U.S. data showed new applications for U.S. unemployment benefits last week fell to a more than one - month low after being boosted by two hurricanes. But the greenback still languished near two - week lows against a basket of currencies, weighed down by the U.S. Fed minutes which the market interpreted as dovish. A strong corporate earnings season could also give the Fed room to continue raising rates, which would be a headwind for gold, Haworth said. Gold is highly sensitive to rising interest rates, as they tend to boost the dollar, in which the metal is priced. Several policymakers said they would focus on upcoming inflation data over the next few months when deciding on the central bank's future rate hike path.
We expect gold prices to trade sideways on the back of profit booking after up - move in prices.
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