According to Angel Commodities, expect gold prices to trade lower continuing its weak trend while stronger dollar index will also exert downside pressure on the yellow metal.
Angel Commodities' report on gold
On Wednesday, gold prices rose marginally by 0.18 percent to close at $1219.5 per ounce edging further from this week's near four - month low after comments from Federal Reserve Chair Janet Yellen curbed speculation that U.S. interest rates would rise more than once this year. In congressional testimony, Yellen said that given current estimates the Fed would not need to lift rates all that much further to reach a neutral level that neither encourages nor discourages economic activity. Immediately after her statement, federal funds futures implied traders saw a 53 percent chance the Fed would raise key overnight borrowing costs at its December meeting, down from 60 percent beforehand, according to CME Group's Fed Watch program. On the MCX, gold prices rose by 0.1 percent to close at Rs.28043 per 10 gms.Outlook
We expect gold prices to trade lower continuing its weak trend while stronger dollar index will also exert downside pressure on the yellow metal. The Janet Yellen testimony cleared the air that the FED will raise rates more than once got lowered probability which is reflected in the FED FUND FUTURES. On the MCX, gold prices are expected to trade lower today, international markets are trading higher by 0.3 percent at $1223 per ounce.
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