According to Sushil Finance, expect gold prices to trade sideways on the back of profit booking after rise in prices.
Sushil Finance's report on Gold
Gold extended its rally into the new year on Tuesday, touching late September highs on a softer U.S. dollar, while spot palladium jumped to a record on fears of short supplies after soaring 57 percent in 2017. The greenback posted its biggest annual drop since 2003 in 2017, helping to lift gold to an annual increase of more than 13 percent. Bullion surged $55 an ounce in the last three weeks of 2017 alone. Global markets received a boost on Tuesday from gains in U.S. equities and surprisingly upbeat Chinese manufacturing data. Technical analysts warned that gold's rally is looking overdone. Key factors for the bullion market this year will be how quickly central banks normalize interest rates, how much further the equities rally goes, the longer - term impact of U.S. tax reforms, and when inflation will pick up, Mitsubishi analyst Jonathan Butler said. Gold is highly sensitive to rising U.S. interest rates because it increases the opportunity cost of holding non - yielding bullion, while boosting the dollar, in which it is priced.Outlook
We expect gold prices to trade sideways on the back of profit booking after rise in prices.
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