Gold - Dec 1, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International Gold prices were slightly higher this early Tuesday afternoon trade supported by a broad weakness in the US dollar.

Additionally, US Treasury Secretary Steve Mnuchin's call to utilize $455 billion from the CARES Act fuelled stimulus hopes and capped weakness.

However, upside was capped as risk appetite improved amid optimism over the vaccine, increased expectations of a swifter global economic recovery and recent upbeat data from China boosted demand for the riskier assets.

Markets will now await ISM Manufacturing PMI and Fed Chair Jerome Powell's testimony due later in the intraday session.

Technically, LBMA Gold Spot has given a breakdown below its 200- Daily Moving Average at $1800 levels which signifies for Bearish Trend in the counter. Immediate support is at $1760-$$1747 levels & resistance is at $1795-$1805 levels.

Domestic gold was trading weaker this early Tuesday afternoon tracking the strength of the Indian Rupee.

Technically, MCX Gold February is sustaining below 48000 levels which is also its 200-DMA indicating a Bearish trend to continue below it up to 47300-46550 levels. Resistance is at 48100-48400 levels.

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Source : Equity Bulls

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