Expect Gold prices to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices were nearly unchanged on Thursday as markets anticipated U.S. jobs data due at the end of the week for guidance on monetary policy for the remainder of the year. The U.S. Fed held interest rates unchanged on Wednesday but raised its inflation outlook and flagged "further gradual" rate increases. The U.S. Fed held interest rates unchanged on Wednesday but raised its inflation outlook and flagged "further gradual" rate increases. The dollar index inched lower after the Fed signaled its confidence about inflation and growth in the U.S. economy, reinforcing views it will raise rates several times this year. Inflation worries generally boost gold, which is seen as a safe - haven against rising prices. But expectations that the Fed will raise interest rates to fight inflation make gold less attractive because it does not pay interest.

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