Gold - July 23, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices extended gains with COMEX spot gold prices rallied above $1870 on Thursday. Gold prices at MCX for August contract were trading up by Rs.477 to Rs. 50555 following strong global peers.

Gold prices rallied on growing market uncertainty over rising virus cases and political tension between US and China. China vowed retaliation after the U.S. forced the closure of its Houston consulate, in one of the biggest threats to diplomatic ties between the countries in decades. China planned to "react with firm countermeasures" if the Trump administration didn't "revoke this erroneous decision," Foreign Ministry spokesman said. The weaker dollar index amid stimulus hopes also supported gold prices to trade higher.

We expect gold prices to trade up with resistance at $1890 and support at $1850. MCX Gold August has important resistance at Rs. 50800, support at Rs. 50300.

Source : Equity Bulls

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