Angel Commodities’ report on Gold
On Thursday, spot gold prices decreased by 0.39 percent to end the day at $1200.7 amid increasing trade war concerns and looming US interest rate hikes. On the MCX, gold prices followed the same trend and declined by 0.66 percent to close at Rs. 30450. Michel Barnier comments on UK possibly securing a Brexit deal in the future likely pressurized the dollar index. A weak dollar provided some kind of support to gold prices but on going trade war concerns pulled back the yellow metal. In addition to tariffs on $200 billion of Chinese goods, Donald Trump said that he wants to impose tariffs on all Chinese imports to US i.e. additional $267 billion of Chinese products. Meanwhile, Donald Trump tweeted that if China doesn’t provide trade concessions to US then he is likely to impose further tariffs on China. Since its peak in Apr’18 gold spot prices have declined by nearly 10 percent on account of rising trade war concerns and investors running towards dollar as a safe haven rather than choosing the traditional safe haven of gold.
We expect gold prices to trade higher today despite trade war concerns looming around the corner with Donald Trump likely to impose additional tariffs on Chinese goods. On the MCX, gold prices are expected to trade higher today; international markets are trading higher by 0.36 percent to trade at $ 1205 per ounce.
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