Spot Gold prices gained in the last week as positive economic data from the major economies boosted optimism over economy. Weakness in the dollar on the back of positive sentiments in the financial markets also helped the gold prices to gain. The yellow metal prices usually trade inversely to the greenback.
OUTLOOK
Short-term View: We expect gold prices to trade with a positive bias in this week but strength in the dollar could recover later as other economic issues demand attention. After Greece, countries like Spain and Portugal face severe deficit issues and this could again trigger concerns in the coming days. Financial uncertainty in the markets could again trigger safe-haven demand for the dollar, thereby triggering a downside in gold prices.
Outlook for today: We expect gold prices to trade higher today as a rise in risk appetite will boost demand for higher-yielding assets like commodities. Weakness in the dollar will be positive for gold prices.
