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Expect Gold, Silver prices to trade sideways: Sushil Fin

According to Sushil Finance, gold and Silver prices are expected likely to trade sideways on the back of short covering after the slump in prices.

January 30, 2015 / 11:28 AM IST

Sushil Finance's report on bullion

Gold

Gold prices tumbled more than 2 percent to a two-week low on Thursday, while silver saw its biggest decline in 1-1/2 years after the Federal Reserve signaled it was still on track to lift U.S. interest rates this year.

In Wednesday's policy statement, the Fed said the U.S. economy was expanding "at a solid pace" but reiterated it would be patient in deciding when to increase benchmark borrowing costs.

The Fed said it would take "financial and international developments" into account when determining when to raise rates, referencing global markets for the first time since January.

Outlook

We expect gold prices are likely to trade sideways on the back of short covering after the slump in prices.

Silver

Silver dropped 6.4 percent to $16.81 an ounce, falling below the 100-day moving average and marking its biggest one-day decline since June 2013.

US economic data showed the number of Americans filing new unemployment claims tumbled to the lowest level in almost 15 years last week.

The fall in U.S. unemployment benefit applications far exceeded economists' expectations and came a day after the U.S. Federal Reserve struck a positive tone and kept expectations of an interest rate rise this year on track.

Outlook

We expect Silver prices are likely to trade sideways on the back of short covering after the slump in prices.

For all commodities report, click here

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