Gold prices are expected to trade sideways today: Angel Commodities

Angel Commodities' report on Gold

On Thursday, Spot Gold slipped over 1.4 percent to close at $1742.6 per ounce. While the US Central bank kept the policy unchanged in the recent meet, plans on withdraw the economic support earlier than expected pressured Spot gold prices.

Federal Reserve Chair Jerome Powell stated that they might hike the interest rate in the coming year if the US economy continues to strengthen. An increase in interest rate will increase the opportunity cost of holding the non-interest-bearing bullion.

The fall in Gold was limited as unexpected increase in the number of Americans claiming for unemployment benefits weighed on the US Dollar. Gold also felt some pressure after worries over the impact of China’s property developer Evergrande's debt crisis on the global economy eased after the group said it would pay some bond interest due.

Outlook

While US FED kept the policy unchanged, hints towards a hawkish approach in the months ahead might continue to weigh on Gold prices. On the MCX, gold prices are expected to trade sideways in today’s session.

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