Gold prices to trade sideways: Angel Commodities

Angel Commodities’ report on Gold

On  Wednesday , spot gold prices  fell  marginally to close at $ 1240.4 per ounce as  dollar  recovered from ten month lows touched in  the aftermath of failure of US  Health Care bill and softening  stance of  the Federal Reserve. Also, SPDR gold holdings fell 5.6 tonnes to five month low of 821.45 tonnes on Tuesday,In the previous session, prices hit a more than two – week high supported by expectations of stronger demand from the physical market and as the dollar fell on fading prospects of an imminent increase i n U.S. interest rates. Data from consultancy GFMS shows India’s gold imports climbed to an estimated 75 tonnes in June from 22.7 tonnes a year earlier. For the first half of the year imports rose to 514 tonnes, up 161 percent year on year. On the MCX, g old prices traded flat to close at Rs. 28480 per 10 gms.

Outlook
We expect gold prices to trade sideways today as weaker dollar index and stronger physical demand are push factors. While rising risk appetite post bank of Japan statement will restrict upside. On the MCX, gold prices are expected to trade sideways today; international markets are trading lower by 0. 2 percent at Rs. 1237.7 per ounce.

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