Gold prices are expected to trade sideways today: Angel Broking

According to Angel Broking, Last week, Spot gold prices rose by 0.9 percent as worries over the economic damage by the coronavirus outbreak weighed on the market sentiments in turn boosting the appeal for the safe haven asset.

February 03, 2020 / 09:47 IST

Angel Broking's report on Gold

Last week, Spot gold prices rose by 0.9 percent as worries over the economic damage by the coronavirus outbreak weighed on the market sentiments in turn boosting the appeal for the safe haven asset. The death toll has risen to 259 with over 11,700 people infected by the coronavirus. The World Health Organization (WHO) also declared a global emergency after the virus spread out to over 20 nations which supported the safe haven asset, Gold. Yields on the 10-year Treasury note dipped to their lowest since October. 10 as the corona virus impact might hamper the global growth. The United States Federal Reserve held interest rates steady at 1.5- 1.75% at its first policy meeting of 2020, with officials pointing towards moderate US economic growth and a "strong" job market which limited the uptrend for Gold.

Outlook

The new virus outbreak which has spread to multiple nations might continue to weigh on the market sentiments and support Gold prices. However, stimulus measures by China’s Central Bank coupled with appreciating Dollar might weigh on the bullion metals. On the MCX, gold prices are expected to trade sideways today.

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