Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold dipped on Tuesday as U.S. Treasury yields rose on an uptick in housing starts for November and even though the dollar fell, a factor that generally supports gold. Market players were wary of taking new positions before the holiday season. Gold is on track to post its narrowest trading range of any quarter in a decade in the last three months of the year. Caution about pending U.S. tax legislation pressured the dollar, traders said. Congress appeared all but certain to pass the bill. World stocks dipped with investors taking profits after recent highs in the tech sector before Republican lawmakers achieve their goal of passage. The dollar eased against the euro, as inve stors were cautious about how much the tax reforms, if passed, would boost the U.S. economy. Holdings of the world's largest gold - backed exchange - traded fund, New York - based SPDR Gold Shares, fell 7.1 tonnes on Monday, their largest one - day outflow since late July, cutting its inflow for the year to 15 tonnes.

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