Gold prices to trade lower today: Angel Commodities

Angel Commodities' report on Gold

On Thursday, spot gold prices declined half a percent to close at $1316.9 per ounce as a stronger U.S. dollar and lofty U.S. bond yields dampened interest in bullion. Worries about the growing supply of U.S. government debt and inflationary pressures from rising oil prices this week pushed U.S. 10 - year note yields above 3 percent for the first time in four years. Gold has been supported by geopolitical uncertainty, which has fueled demand as a safe haven, but prevented gold from moving higher in fears of rising U.S. interest rates that would push up bond yields and strengthen the dollar. On the MCX, gold prices declined half a percent to close at Rs.31427 per 10 gms

Outlook
We expect gold prices to trade lower today as increasing bond yields and rising US dollar are near term factors. Stronger - than - expected economic growth or inflation would hurt gold by bolstering expectations of more rapid increases in interest rates. On the MCX, gold prices are expected to trade lower today, international markets are trading flat at 1318.40 per ounce.

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