Gold - Oct 15, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International bullion prices were down on Thursday afternoon in Asia as the dollar gained strength.

Impasse over U.S. COVID-19 stimulus talks kept the greenback up. Negotiations over COVID-19 stimulus have stalled, with House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin unable to reach agreement over the details of any package.

A rapid rise in new coronavirus cases in Europe is also pushing the dollar, with new restrictions coming into force. The risk to economic recovery sent investors toward the greenback and weighed on bullion.

The likely extension of the Brexit trade deal discussions also pushed bullion lower, with talks between Britain and the E.U. now likely to be extended beyond the U.K. Prime Minister Boris Johnson's self-imposed cut-off date of Oct. 15.

Markets will look ahead to the jobless claims data due tonight.

Technically, LBMA Gold Spot is trading near 21 Daily Moving Average where it is trading below the upper band of Falling Channel formation. Therefore below $1902 will continue to see downside pressure $1874-$1867 levels where upside resistance is at $1905-$1912 levels.

Domestic bullion prices were trading lower this Thursday afternoon in Asia tracking weak overseas prices.

Technically, MCX Gold December contract has halted downside move near 100-Daily Moving Average which is placed at 50399 levels where below this level could see a Bearish move upto 50150-49900 levels. However bounced back above 50400 could see upside push up to 50700 levels.

Source : Equity Bulls

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