Gold prices to trade lower: Angel Commodities

Angel Commodities' report on Gold

On Tuesday, spot gold prices declined by 0.7 percent to close at $1284.8 per ouncen speculation that the eventual successor to U.S.  Federal Reserve Chair Janet Yellen will favor higher interest rates. U.S. President Donald Trump was favoring policy hawk John Taylor as the next head of the Fed, Bloomberg reported, pushing the dollar higher and lifting U.S. Treasury yields. Taylor, a Stanford economist, is seen as more likely to raise rates than Yellen, which would boost the dollar and dent gold and U.S. Treasuries. The Fed will probably need to raise rates in December and then three or four times "over the course of next year", assuming U.S. unemployment continues to fall and inflation rises, Boston Fed President Eric Rosengren said on Monday. On the MCX, gold prices declined 0.85 percent to close at Rs.29647 per 10 gms.

Outlook
We expect gold prices to trade lower as the new FED successor is more likely in favour of high interest rates while strengthening dollar and good labor market will further push down yellow metal prices. On the MCX, gold prices are expected to trade lower today, international markets are trading higher by 0.08 percent at $1286 per ounce.

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