Gold prices are expected to trade sideways today: Angel Commodities

Angel Commodities' report on Gold

Last week, spot gold prices ended higher by 0.9 percent. Investors took shelter under the safe haven asset over rising uncertainties on Brexit as the European Unions delayed a decision on granting an extension to Britain. Sharp downfall in the new orders for key U.S.-made capital goods in September’19 amid declining shipments signalled towards weakness in global economy. Weak economic number from the U.S. further raised the expectation of the interest rate cuts by the U.S. FED which supported the yellow metal. Federal fund futures show that traders see a more than 90% chance for a 25 basis-point rate cut by the U.S. Federal Reserve in its month end monetary policy meeting. Declining U.S. interest rate pressurizes the Dollar and bond yields in turn boosting the appeal for the bullion metals.

Outlook

Expectation of a rate cut by the U.S. Central bank might support the bullion metal. However, easing of tension between U.S. & China might shift the investors towards riskier assets. On the MCX, gold prices are expected to trade sideways today, international markets are trading flat at $1504.80 per ounce.