Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices rose on Monday, buoyed by a weaker dollar, as investors looked ahead to congressional testimony by the nominee to chair the U.S. Federal Reserve and a meeting between U.S. President Donald Trump and Senate Republicans on tax reform. Last week, U .S. PMI and capital goods data missed expectations, pressuring the dollar which slid to its weakest in two months. A weaker dollar can stimulate demand for gold, making the precious metal cheaper for holders of other currencies. Also weighing on the dollar were the minutes from the latest Federal Reserve meeting, showing policymakers were concerned about low inflation and could be wary of raising interest rates rapidly. Gold is highly sensitive to rising interest rates because they tend to strengthen the dollar and push U.S. bond yields higher, reducing the appeal of non - yielding bullion. Also on Tuesday, Trump will meet with Senate Republicans to discuss tax reform legislation that could accelerate U.S. economic growth. Gold options on the December contract were set to expire on Monday.

Outlook
We expect gold prices to trade sideways on the back of lack of economic events. For all commodities report, click here

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