Gold - July 22, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded higher with COMEX spot gold prices rose above $1820 on Tuesday. Gold prices at MCX for August contract were trading up by Rs.180 to Rs. 49207 by noon session following strong global prices.

Gold prices gained momentum after European leaders agreed on a stimulus package to revive the economy while the US congress will debate on a new aid package this week. The European Union leaders reached a deal on Tuesday morning on a post-pandemic recovery package for the economy of the 27-nation bloc offering 750 billion Euros in grants and loans to counter the effects of the COVID-19-indiced recession.

We expect gold prices to trade up with resistance at $1830 and support at $1810. MCX Gold August has important resistance at Rs. 49400, support at Rs. 49000.

Source : Equity Bulls

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