Expect Gold to trade positive: Sushil Finance

Sushil Finance's report on Gold

Gold slipped back to a one - week low on Tuesday as markets braced for U.S. President Donald Trump's annual State of the Union address and news on U.S. monetary policy. The speech and policy news will come amid positive consumer data and continuing fallout from a Republican memo alleging anti - Trump bias. Markets are also bracing for potentially hawkish language from the U.S.  Federal Reserve, which ends its two - day policy meeting on Wednesday amid signs that U.S. economic growth is picking up steam. Investors will be closely watching Trump's annual State of the Union speech for comments on the dollar. U.S. Treasury Secretary Steven Mnuchin gave dollar bears a boost last week with a tacit endorsement of a weak U.S. currency, though Trump later tried to row back from those comments. Gold hovered near its one - week low despite world equity markets taking their biggest two - day dive in six months, while the dollar index slipped back after climbing overnight. Rising bond yields and a sell - off in healthcare shares sent the U.S. stock market sliding, with the Dow Jones Industrial Average's 352 - point tumble its steepest in eight months. Higher bond yields make gold a less attractive investment because it pays no interest.

Outlook
We expect gold prices to trade positive on the back of speculative buying.
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