Gold prices to trade lower today: Angel Commodities

Angel Commodities' report on Gold

Last week, spot gold prices traded lower by 1.28 percent to trade at $1252 per ounce while MCX gold prices declined 0.58 percent to trade at Rs.30432 per 10 gms. On a monthly basis, gold prices have shed by around 4 percent in the international markets while MCX gold prices have fallen by 1.3 percent in the same time frame as rupee depreciation of around 2 percent cushioned sharp downfall in the Indian markets. Despite escalating trade tensions between US and China, gold prices have been falling as markets are pricing in two more rate hikes for the rest of the year. Rising interest rate scenarios does not favour investments in the yellow metal and hence the prices correction.  The US economy growing at 4.5 annualised rate in the second quarter, and steady dollar are blend of options for gold prices to move down in the coming weeks.

Outlook
We expect gold prices to trade lower continuing its weakness from the previous trading session while the trade tensions between US and China will continue to dominate the investors sentiment. On the MCX, gold prices are expected to trade lower today, international markets are trading higher by 0. 11 percent at $125 0 per ounce.
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