Gold - August 4, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded firm with COMEX spot gold prices traded near $1977 on Tuesday. Gold October future contracts at MCX were trading marginally up to Rs. 53770 supported by positive global prices and rupee depreciation.

The dollar index gave up gains, maintaining a weak outlook and moving in a range close to two-year-lows. The weak dollar combined with the U.S. Federal Reserve keeping interest rates at near zero are supporting gold prices to trade firm. Low or negative interest rates are typically positive for gold prices as they make holding interest-bearing investments like bonds less attractive and reduce the opportunity cost of holding gold.

We expect gold prices to trade firm with resistance at $2000 and support at $1955. MCX Gold August has important resistance at Rs. 54000 support at Rs. 53600.

Source : Equity Bulls

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