Gold prices are expected to trade sideways today: Angel Commodities

According to Angel Commodities, On the MCX, gold prices are expected to trade sideways today, international markets are trading lower by 0.34 percent at $1276.65 per ounce.

May 30, 2019 / 11:50 IST

Angel Commodities' report on Gold

On Wednesday, Spot Gold prices ended marginally higher by 0.1 percent to close at $1279.2 per ounce whereas Gold on the MCX ended higher by 0.61 percent to close at Rs.31733.0 per 10gms. The safe haven appeal for the bullion metal boosted considering the ongoing trade tension between US & China increased.

However, investors preferred Dollar as a safe haven over Gold which led to a rally in the Dollar Index in turn capping the gains for Gold. Rising concerns of a global economic slowdown with constant escalation of US China trade tension, no proper conclusion of the Brexit and issues in the European economy pushed the Dollar higher. Moreover, even the U.S. Treasury yields is continuously declining over growing global growth worries which pressurized the Dollar index.

Outlook

Boost in the appeal for the U.S. Dollar over rising global uncertainties might continue to weigh on Gold. However lower treasury yields might cap the gains for Dollar. On the MCX, gold prices are expected to trade sideways today, international markets are trading lower by 0.34 percent at $1276.65 per ounce.