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

Gold prices traded lower with COMEX spot gold prices fell below $1870 to $1862 on Thursday. Gold December future contract at MCX were trading half a percent down to Rs. 49956 per 10 grams for the day.

Gold prices traded lower as investors and traders switched to riskier assets on new vaccine development. The Pfizer Inc said a final analysis of clinical-trial data indicated its Covid-19 vaccine was 95% effective raising hopes for availability for consumption. Gold prices are expected to trade sideways to down as markets may continue to digest the vaccine optimism. The weaker dollar and worries over surge in virus cases may provide some support to the precious metals.

We expect gold prices to trade sideways to down with COMEX gold resistance at $1880, support at $1850. MCX Gold December support lies at Rs. 49600 with resistance at Rs. 50200.

Source : Equity Bulls

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