MCX GOLD TIPS!!!

Expect spot gold prices to trade negative: Sushil Finance

Sushil Finance's report on bullion

A spot gold price decreased by 1.03 percent in the yesterday’s trading session on the back of strength in DX. Further, strong economic data from US increased the expectations among the investors that the US Federal Reserve may start trimming bond buying programme soon which added downside pressure on the prices. Additionally, rise in stock markets reduced the demand for safe haven. Apart from that, decline in SPDR gold trust holding kept prices under pressure. In the Indian Markets, gold prices fell by 0.43 percent taking cues from Intl spot gold prices. However, depreciation in the Indian Rupee cushioned sharp fall in the prices. Gold prices touched an intraday low of 27760/10gms and closed at 27934/10gms.

Outlook: We expect spot gold prices to trade on the negative note on the back of strength in Dollar Index (DX). Further, rise in the stock markets may keep investors away from gold. Additionally, strong economic data from US increased the expectations among the investors that the US Federal Reserve may start trimming bond buying programme soon which may add downside pressure on the prices. Apart from that, SPDR gold trust holding is near 4 years low which may act as a negative factor for the prices. However, expectation of decline in US Non-farm employment change along with the anticipation of favorable economic data from Euro Zone and UK may cushion sharp fall in the prices. In the Indian Markets, appreciation in the Indian Rupee may exert downside pressure on the prices.

To know more what's happening in the market contact 

Niva Capital Advisory or visit www.nivaca.com

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