According to Angel Commodities, On the MCX, gold prices are expected to trade sideways today.
Angel Commodities' report on Gold
Last week, spot gold prices ended marginally lower by 0.4 percent. Easing of tensions arising from the Middle East coupled with the preliminary U.S.-China deal boosted the risk appetite amongst investors in turn denting the demand for the safe haven asset, gold.
The U.S.-China interim trade deal was signed on 15th January 2020 in the White House; it was the first step to end the prolonged trade and tariff war and improve the global economic prospects. However, most of the tariffs still remain in place even after the phase one trade deal which might raise worries in the markets. U.S. officials stated that they would only revoke the tariffs after completion of the phase two agreements which might take place after the U.S. presidential election in Nov 2020.
Moreover, Robust trade data from China amid surge in U.S. retail sales for the third consecutive month in December 2019 decreased the demand for the safe haven asset which weighed on the prices. Even the claims for unemployment benefits dipped for the fifth week which further improved the market sentiments.
Robust economic data from U.S. fuelled the risk appetite amongst investors and dented the appeal for the safe haven asset, Gold. On the MCX, gold prices are expected to trade sideways today.
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