Gold - Oct 16, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International bullion prices are trading marginally higher this Friday afternoon trade in Asia amid safe haven appeal for the metals as resurging cases of covid-19 could paint a bleak economic outlook.

The U.S. Dollar was trading lower this Friday afternoon trade and lent support.

However, upside remained capped amid an impasse over the fresh covid-19 stimulus bill.

Technically, LBMA Gold Spot is trading above 21 Daily Moving Average where prices are near to the upper band of Falling Channel formation. Therefore above $1902 will continue to see upside move up to $1920-$1927 levels where downside support is at $1897-$1888 levels.

Domestic bullion prices are trading marginally higher this Friday afternoon trade, tracking firm overseas prices.

MCX Gold December contract is trading above 65-Days Moving Average where if it sustains above 50700 could see a bounce up to 51050-51300 levels whereas support is at 50500-50250 levels.

Markets could look ahead to Retail sales, industrial production and Michigan Sentiment data from the U.S. tonight.

Source : Equity Bulls

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