Gold prices to trade lower:
On Wednesday, spot gold prices declined marginally by 0.2 percent to close at $1278.4 per ounce as U.S. data showed a rise in retail sales data last month and an uptick in underlying inflation which cemented expectations for further U.S. interest rate hikes. The outlook for U.S. tax cuts that could stimulate economic growth was clouded after U.S. Senate Republicans created new political obstacles by linking the repeal of a key component of Obamacare to the tax reform plans. On the MCX, gold prices declined marginally by 0.31 percent to close at Rs.29670 per kg.
We expect gold prices to trade lower today on account of profit booking at higher levels while the implementation of tax cuts in the US and good economic data from the US will exert downside pressure. On the MCX, gold prices are expected to trade lower today, international markets are trading flat at $1277 per ounce.