Gold prices to trade higher today: Angel Commodities

Angel Commodities' report on Gold

Spot gold prices recovered yesterday and gained 0.3 percent ahead of FOMC meeting wherein the new Fed chief Jerome Powell could raise interest rates and signal three  more increases this year. Last week, spot gold prices declined by 0.42 percent to trade at $1318  per ounce while MCX gold prices traded lower by same margin to  trade at Rs.30270 mark. Last week was full of events which created volatility for gold prices starting with imposition of import tariffs by US on Steel and Aluminum, tensions between Russia and Britain, higher US equities, good payrolls data creating optimism in the US led to the price moves in gold.  Markets are now looking to the next Fed meeting for direction on the pace of U.S. interest rate hikes this year. Moreover, US president preparedness to meet North Korean leader Kim Jong Un marks a dramatic breakthrough in nuclear tensions.

Outlook
We expect gold prices to trade higher as string of uncertain events right from falling support for Japanese Prime Minister Shinzo Abe’s cabinet to unceremonious exits from Trump administration will boost safe haven demand. Also, global investors cautiously await Jerome Powell’s first meeting as Fed chief. On the MCX, gold prices are expected to trade higher today, international markets are trading flat at $ 1316.4 per ounce.

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