Bullion counter may trade sideways with negative bias on stronger dollar as ECB Draghi speech later today will give further direction to the prices. Gold can move in range of 29400-29850 while silver can move in range of 41500-42100 in near term.
Higher interest rates should initially lead to a stronger dollar, curbing demand for gold. While prices have dipped, investor demand remains resilient. Holdings in gold-backed exchange traded funds as of Oct. 13 rose to 2,050.3 metric tons, the highest level since June 2013.
On Monday, the euro zone is to publish revised data on inflation. and the U.S. will report industrial production and manufacturing activity in the New York region. Among policymakers, ECB President Mario Draghi will speak at an event in Frankfurt and Fed Vice-Chair Stanley Fischer will speak in New York.
Courtesy: Smc Comtrade