Expect Gold to trade negative: Sushil Finance

Sushil Finance's report on Gold

Gold steadied below $1,250 an ounce on Monday after its biggest weekly drop in more than six months as markets anticipated an interest rate hike from the U.S. Federal Reserve this w eek. The Fed is expected to lift rates at its two - day policy meeting ending on Wednesday, but its accompanying statement will be closely watched for any surprises. Gold is highly sensitive to rising U.S. interest rates, as these increase the cost of holding non - yielding bullion, while boosting the dollar, in which it is priced. In the wider markets, world stocks rose and equity volatility neared a record low ahead of a raft of central bank rate decisions, while newly launched bitcoin futures shot above $18, 000. Hedge funds and money managers sharply reduced their net long positions in COMEX gold and silver contracts in the week to Dec. 5, U.S. data showed on Friday.

Outlook
We expect gold prices to trade negative a head of US FOMC meeting.
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