Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices clung to earlier gains and were poised for their first weekly gain in four weeks on Friday, withstanding pressure from strong equities markets on continued support from this week's interest rate rise by the Federal Reserve. Higher interest rates usually push gold lower because they raise bond yields, reducing the appeal of non - yielding bullion, and boost the dollar, making gold more expensive for holders of other currencies. But markets had priced in Wednesday's rise and the dollar and bond  yields fell after the Fed kept its outlook for three rate rises next year  unchanged and said proposed U.S. tax cuts would not significantly spur  growth. U .S. inflation remained weak, which Chicago Fed President Charles Evans said on Friday undermined the case f or rate rises. The dollar recouped some losses as Republican senators worked to resolve disagreements on the tax reform. Major stock indexes hit record highs. Societe Generale analyst Robin Bhar said gold's bounce would be short - lived because other asset classes including equities, industrial metals and even bitcoin appeared to offer better returns. Gold is up around 9 percent this year while global shares and industrial metal s have gained some 20 percent and bitcoin 1,740 percent.

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