Moneycontrol
Feb 07, 2018 03:41 PM IST | Source: Moneycontrol.com

Expect Gold prices to trade positive: Sushil Finance

According to Sushil Finance, Gold prices fell 1 percent to a 2 - 1/2 - week low on Tuesday, as investors focused on expectations for higher U.S. interest rates, even as U.S. stock markets swung wildly in both directions a day after the Dow and S&P 500 indexes tumbled.


Sushil Finance's report on Gold


Gold prices fell 1 percent to a 2 - 1/2 - week low on Tuesday, as investors focused on expectations for higher U.S. interest rates, even as U.S. stock markets swung wildly in both directions a day after the Dow and S&P 500 indexes tumbled. Strength in the U.S. dollar index weighed on gold prices earlier, when world stock markets extended their sell - off. The greenback later turned flat. A stronger dollar typically makes commodities priced in the greenback more expensive for buyers using other currencies. Gold saw no safe - haven boost from tumbling equity markets this week because the U.S. economy is still seen as robust and shares are expected  to rebound, traders said. Markets had been anticipating up to four U.S. interest rate hikes this year. However, the economy may not be as strong as forecast, Pehowich said, reducing the need for such aggressive action. Higher interest rates make gold a less attractive investment because it pays no interest.

Outlook
We expect gold prices to trade positive on the back of short covering after drop in prices.

For all commodities report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Sections
Follow us on
Available On