Gold - August 12, 2020 - Mr. Tapan Patel- Senior Analyst - Commodities, HDFC securities

Gold prices drifted lower with COMEX spot gold continued downside after falling below $1900 in morning trade. Gold October future contracts at MCX were trading at Rs. 51900 by noon session as recovery in global gold prices and rupee depreciation kept downside limited.

Gold prices reported steepest daily decline in more than 7 years on Tuesday on corona vaccine announcement and rise in US bond yields. The yield on the 10-year Treasury note rose 7 basis points to 0.64% as investors shunned safe-haven assets. The dollar recovery and rise in bond yields may continue to pressure bullion prices in the short term.

We expect gold prices to trade sideways to down with support at $1860 and resistance at $1980. MCX Gold October support at Rs. 50200, resistance lies at Rs. 53800.

Source : Equity Bulls

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