Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices hovered above a four - month low on Friday and were on track for their biggest weekly fall since May after progress on U.S. tax reform fueled optimism about the U.S. economy and boosted the dollar. Stronger - than - expected U.S. employment data on Friday also demonstrated healthy economic growth and suggested the Federal Reserve will raise interest rates next week, as expected. The U.S. Fed is expected next week to announce a rise in interest rates and offer guidance on the pace of further increases. It has previously forecast three rate hikes in 2018. That is likely to pressure gold prices because rising interest rates push up bond yields, reducing the appeal of non - yielding gold, and tend to boost the dollar. Wall Street and other major global stock markets rose, and the U.S. dollar was on pace for its fifth day of gains after the jobs data.

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