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gold prices are expected to trade sideways today

Monday, Nov 11 2019 10:58AM

Last week, Gold prices plunged over 3 percent after tensions between U.S. & China eased which boosted the risk appetite amongst investors and dented the demand for the safe haven asset, Gold. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, U.S. & China stated that they would revoke few of the tariffs imposed earlier as a part of the phase one agreement of the trade deal. Conciliatory gestures by both the super power nations signalled` towards easing of tension hampering the appeal for the yellow metal. Moreover, a consistent strengthening of the labour market in U.S. supported the Dollar which further weighed on the yellow metal prices. A larger than expected fall was witnessed in the number of Americans filing applications for unemployment benefits which supported the U.S. Dollar.
Fading optimism over a possible trade deal between U.S. & China amid weak economic data from China might dent the risk appetite amongst investors and support Gold prices. On the MCX, gold prices are expected to trade sideways today; international markets are trading marginally lower by 0.03 percent at $1462.45 per ounce.


Last week, Gold prices plunged over 3 percent after tensions between U.S. & China eased which boosted the risk appetite amongst investors and dented the demand for the safe haven asset, Gold. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold. However, U.S. & China stated that they would revoke few of the tariffs imposed earlier as a part of the phase one agreement of the trade deal. Conciliatory gestures by both the super power nations signalled` towards easing of tension hampering the appeal for the yellow metal. Moreover, a consistent strengthening of the labour market in U.S. supported the Dollar which further weighed on the yellow metal prices. A larger than expected fall was witnessed in the number of Americans filing applications for unemployment benefits which supported the U.S. Dollar.
Fading optimism over a possible trade deal between U.S. & China amid weak economic data from China might dent the risk appetite amongst investors and support Gold prices. On the MCX, gold prices are expected to trade sideways today; international markets are trading marginally lower by 0.03 percent at $1462.45 per ounce.


On Wednesday, spot gold prices ended marginally higher by 0.06 percent to close at $1558.6 per ounce. The coronavirus outbreak in China led to multiple deaths and the reported cases of infection confirmed were over 500. The world health organisation will arrive on a decision on Thursday i.e. today whether to declare a global emergency over the outbreak. The virus has apparently hit U.S. as well as they reported their first case. Investors assessed that virus outbreak might lead to a global epidemic and impact the global economy which supported Gold prices. U.S. Treasury Secretary Steve Mnuchin stated that the fresh trade deals with China, Mexico and Canada could help the U.S. economy and helped the U.S. Dollar recover in turn pressurizing the yellow metal prices.
The new virus outbreak in China and U.S. might raise worries in the global markets and support the Yellow metal prices. However, better growth prospects of the U.S. economy might undermine the demand for Gold. On the MCX, gold prices are expected to trade sideways today.


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