Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold edged lower on Monday, retreating further from last week's 3 - 1/2 - month high as the U.S. dollar regained some ground against the buoyant euro and traders bet on further U.S. interest rate hikes after Friday's payrolls data. The dollar, which has remained weak after its biggest annual drop since  2003, had helped to lift assets priced in the U.S. currency, with gold last  week registering a fourth straight weekly gain for the first time since  April. Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non - yielding bullion while boosting the dollar, in which it is priced. Market participants are awaiting U.S. Consumer Price Index (CPI) data later this week, which are expected to show inflation likely increased 0.2 percent in December after rising 0.1 percent in November.

Outlook
We expect gold prices to trade sideways on the back of profit booking after rise in prices. For all commodities report, click here

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