Gold prices are expected to trade higher today: Angel Commodities

Angel Commodities' report on Gold

Last week, spot gold prices dipped lower by 0.5 percent. Gold prices were pressurized after markets expected a smaller rate cut which supported the Dollar. Mixed signals from the FOMC waved away the chances of higher rate cut in their meeting in the end of July which weighed on the spot gold prices. Moreover, prices dipped over upbeat U.S. economic data which pushed the Dollar higher. Weekly U.S. jobless claims declined to a three month low last week signalling towards strengthening of their labour market. However, tension from the Middle East further escalated after U.S. claimed to destroy another Iranian drone in the Strait of Hormuz. Constant escalating global tension boosted the appeal for the safe haven asset, gold. Markets will have keen watch on the U.S. Federal Reserve’s July 30-31 meeting where they are expected to trim down the rate. A rate cut in by FOMC might push the Dollar lower and support Gold prices.

Outlook

Rising chances of a possible rate cut by the U.S. Federal Reserve amid escalating tension in the Middle East might provide some support. On the MCX, gold prices are expected to trade higher today; international markets are trading lower by 0.17 percent at $1421.65 per ounce.

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