Sushil Finance’s report on Gold
Gold prices rose slightly on Friday as the U.S. dollar hovered near a three – year low on heightened fears of a U.S. government shutdown, but the precious metal was still on track for its first weekly drop in six weeks. The U.S. dollar fell versus a basket of currencies as the U.S. Senate raced to avert a government shutdown on Friday ahead of a midnight deadline with no agreement on funding in sight. A weak dollar makes dollar – priced gold cheaper for non – U.S. investors. However, gold’s gains were capped by a week – long rise in bond yields fueled by expectations that strong global economic data would encourage the U.S. Federal Reserve to press ahead with monetary tightening. Expectations of rising interest rates tend to lift bond yields, reducing the appeal of holding non – yielding bullion while boosting the dollar, in which gold is priced.
We expect gold prices to trade positive on the back of speculative buying.
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