Thursday, 16 May 2019

Expect Gold futures to trade sideways: Angel Commodities


On Wednesday, spot gold prices ended marginally lower by 0.03 percent to close at $1296.4 per ounce. The officials of U.S and China confirmed that the two countries have decided to continue with their trade negotiations which eased off worries of global crisis and boosted the risk appetite amongst investors in turn pressurizing Gold.

President Trump planned to postpone imposing tariffs on imported cars and parts by up to six months avoiding further escalation of trade tension between the biggest economies in the world. However, U.S. levied severe sanctions on China's telecoms giant Huawei on 15th may 2019 fading off any optimism over a possible trade deal.

U.S. Treasury Secretary Steven Mnuchin will travel to Beijing soon to resume with the trade negotiations as the two countries try to bridge their differences and end their month’s long trade spat.

Outlook

We expect Gold prices to trade sideways as US & China confirm continuation of trade talks which eased of worries of a full blown trade war and increasing risk appetite amongst investors. On the MCX, gold prices are expected to trade higher today, international markets are trading lower 0.15 percent at $1295.85 per ounce.

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