Gold prices are expected to trade sideways today: Angel Broking

Angel Broking's report on Gold

On Thursday, Spot gold prices ended higher by 0.65 percent to close at $1566.6 per tonne as concerns over the economic damage by the coronavirus outbreak weighed on the market sentiments and boosted the demand for the safe haven asset, Gold. The death toll has crossed 630 in China with over 30,000 people infected by the coronavirus. The uptrend was restricted after China's move to trim tariffs on few U.S. imports that boosted the demand for the riskier assets and weighed on the yellow metal prices. The gains for Gold were further limited as the U.S. Dollar appreciated over robust U.S. economic data making Gold expensive for other currency holders. Solid Manufacturing numbers coupled with rise in January private payrolls and services sector activities signaled towards growth in the biggest economy in the world in turn supporting the U.S. Dollar.

Outlook

The rapidly spreading virus and its economic impact might boost the appeal for the safe haven asset, Gold. Appreciating Dollar over robust U.S. economic data might cap the gains for Gold. On the MCX, gold prices are expected to trade sideways today.

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