Expect Gold prices to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices declined on Friday as the U.S. dollar ticked up against the euro after U.S. jobs data showed a robust rise in jobs and wages and 10 - year U.S. Treasury yields peaked. Non - farm payrolls rose by 200,000 jobs in January, the U.S. Labor Department said, beating expectation of 180,000 and their largest annual gain in more than 8 - 1/2 years. Average hourly earnings rose and boosted the year - on - year increase to 2.9 percent, the largest rise since June 2009. Higher interest rates make gold less attractive to investors because it does not pay interest. The Fed held interest rates unchanged after its latest policy meeting this week but raised its inflation outlook and flagged "further gradual" rate increases. On the wider markets, world stocks were set to post their biggest weekly drop since late 2016 as talk of central bank policy tightening and expectations of higher inflation boosted borrowing costs globally.

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