Fading appetite for riskier assets amongst the investors due to mounting global growth concerns increased demand for Dollar (safe haven)which might in turn pressurize Gold
Angel Commodities' report on Gold
Last week, spot gold end flat whereas MCX gold declined by 1.73 percent as risk appetite amongst investors decreased which increased the demand for Gold, the safe haven asset. Gold prices declined after Dollar strengthened over higher U.S. Treasury yields. Increasing US treasury yields and strong growth witnessed by US in the fourth quarter supported Dollar in turn making Gold expensive for other currency holders Dovish stance by the ECB supported the U.S. Dollar Index which in turn limited the gains for the yellow metal. The ECB will hold back their monetary tightening until 2020 which pushed the US Dollar higher.
On the MCX, gold prices are expected to trade higher today; international markets are trading lower by 0.17 percent at $1297.05 per ounce.
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