Gold - Oct 13, 2020 - Mr. Sriram Iyer, Senior Research Analyst - Reliance Securities

International Gold and silver prices are trading marginally weak on Tuesday afternoon trade in Asia as the dollar rebounded.

However downside remained capped as a U.S. stimulus package could be passed eventually that will boost its appeal as a hedge against the rising inflation.

Meanwhile, adding to the uncertainty over the economic recovery was a recent spike in COVID-19 cases across major economies, including the U.S. and the UK, with worldwide infections crossing 37.74 million and supported the safe haven appeal for the metals.

Technically, LBMA Gold Spot is trading near a support of $1920 levels where there is also a support of the Falling Trend line. However below $1917 will active Bearish move up to $1909-$1900 levels. Meanwhile a bounced back from $1920 could take prices to $1928-$1936 levels.

LBMA Silver Spot holds a support near 21-Daily Moving Average which is placed at $24.50 levels from where a bounce back move can be expected up to $25.55-$26.10. However breakdown below $24.20 can expect downside momentum up to $23.50-$22.00 levels.

Domestic gold and silver futures on MCX are trading weak, tracking weak overseas prices.

Technically, MCX Gold October is sustaining above 65-Day Moving Average at 50750 which will be immediate support for further upside rally. However 51300 levels hold immediate resistance.

MCX Silver December will hold a support of 21-Daily Moving Average which is placed at 62400 levels below which could see some sideways to marginal downside momentum up to 61400 levels. Resistance 63070-64200 levels.

Source : Equity Bulls

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