Gold - Aug 19, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded lower with COMEX spot gold traded below $1990 on Wednesday. Gold October future contract at MCX fell by 0.70% to Rs. 53195 by noon session with fall international prices.

Gold prices traded down on dollar recovery ahead of US FOMC minutes tonight. Gold prices declined on speculation of possible consensus over a proposed stimulus package of $500 billion from the US. Earlier, gold prices continued upside with plunge in dollar index and fall in treasury yields which fell by 2.8% on Tuesday. The investors are awaiting for FOMC minutes which can be more dovish for the market.

We expect gold prices to trade sideways to up with support at $1950 and resistance at $2030. MCX Gold October support at Rs. 52800, resistance lies at Rs. 53700.

Source : Equity Bulls

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