According to Angel Commodities, on Monday, spot and MCX gold prices traded flat hurt by strong dollar, falling risk aversion and rising US bond yields.
Angel Commodities' report on Gold
On Monday, spot and MCX gold prices traded flat hurt by strong dollar, falling risk aversion and rising US bond yields. Risk aversion mode was done away with in the global markets after US and China decided not to slap tariffs on each other’s goods, at least for now. Stronger dollar index, rising bond yields in the US, adding to weakness in the yellow metal. The dollar has climbed nearly 4 percent this quarter on expectations the U.S. Federal Reserve will lift U.S. interest rates further this year to curb inflation, at a time when other central banks are still keeping monetary policy loose. On the other side, the euro remains under pressure, hovering near a five - month low on concerns that political developments in Italy could cause wider disruption in the common currency bloc.
OutlookWe expect gold prices to trade lower today as strong US dollar index will exert pressure although political uncertainty in Italy could provide a cushion. On the MCX, gold prices are expected to trade lower today, international markets are trading lower by 0. 2 percent at $ 1290.2 per ounce.
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