Analysts Expected that Gold Prices Will Trade Lower Today
The gold prices declined by 0.44 percent to close at $1310 per ounce on Tuesday. This was seen as the U .S. dollar strengthened ahead of a Federal Reserve meeting at which the U.S. central bank is expected to raise interest rates for the first time this year. The looming Fed meeting has helped to push gold down 4 percent from a 1 – 1/2 – year high reached in January. As gold has fallen, funds have scaled back bets on higher prices, with the net long position in Comex gold falling to about 136,000 contracts from almost 210,000 in late January. On the MCX, gold prices declined 0.51 percent to close at Rs.30459 per 10 gms.
It is expected that gold prices will trade lower ahead of the outcome of the FED meeting in which it is expected that they may do the rate hike at a faster pace in 2018. On the MCX, gold prices are expected to trade lower today, international markets are trading marginally higher by 0.2 percent at $1314 per ounce.