Angel Commodities’ report on Gold
On Monday, spot gold prices rose marginally by 0.09 percent to close at $1214 per ounce from their lowest since mid – March in choppy trade, after nearing technical support and as traders awaited signals from central banks on interest rate hikes. Markets were looking ahead to Wednesday and Thursday, when U.S. Federal Reserve Chair Janet Yellen will address Congress. U.S. 10 – year bond yields have risen sharply since late June, while gold is down nearly 7 percent from a high of $1,295.97 a month ago. Investors have sharply scaled back bets, reducing their net long positions in COMEX gold in the week to July 3 by more than half to the smallest bullish stance since January. On the MCX, gold prices rose marginally by 0.1 percent to close at Rs.27981 per 10 gms.
We expect gold prices to trade lower as rise in bond yields in the US and continuous weakness in the precious metal on account of tightening monetary policy stance by major central banks are push factors in the near term. On the MCX, gold prices are expected to trade lower today, international markets are trading lower by 0.15 percent at $1212 per ounce.
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