Expect Gold to trade sideways: Sushil Finance

Sushil Finance's report on Gold

Gold prices edged lower on Wednesday, pressured by stronger equities and a firmer dollar amid speculation over who will be the next U.S. Federal Reserve chief. Asian shares inched higher on Wednesday, while U.S. Treasury yields and the dollar got a lift following a report that Republican senators were leaning towards John Taylor to be the next Federal Reserve chief. U.S. President Donald Trump used a lunch with Senate Republicans on Tuesday to get their views on who he should tap to be the next leader of the Fed, according to senators who attended. A source familiar with the matter said Trump polled the Republicans on whether they would prefer Stanford University economist Taylor or current Fed Governor Jerome Powell for the job, and more senators preferred Taylor. Taylor is seen as a hawkish candidate who would prefer higher interest rates in the United States. Market participants are widely anticipating one more interest rate hike this year. Higher rates tend to boost the dollar and push bond yields up, adding pressure and denting the greenback - denominated, non - yielding gold's appeal.

Outlook
We expect gold prices to trade sideways on the back of short covering after drop in prices.

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