Bullion - Dec 4, 2020 - Commodity Snippet - Reliance Securities

International gold ended with modest gains as the dollar fell and investors hoped of an eventual breakthrough in negotiations over a new U.S. coronavirus aid package.

U.S. lawmakers sought to hammer out an agreement on aid for an ailing U.S. economy with signs that a $908 billion bipartisan proposal was gaining traction, while U.S. President Donald Trump expressed support for a relief bill.

The Dollar crashed on Thursday as signs of progress toward U.S. fiscal stimulus, optimism about COVID-19 vaccines and better than expected labour market data kept investors upbeat.

Initial claims for state unemployment benefits fell 75,000 to a seasonally adjusted 712,000 for the week ended Nov. 28. A poll had forecast 775,000 applications.

Holdings of the SPDR Gold Trust ETF fell 0.1% to 1,189.82 tonnes on Thursday from 1,191.28 tonnes on Wednesday.

Domestic gold and silver rose on Thursday, tracking firm overseas prices.

International and Domestic Outlook

International spot gold and silver prices have started flat this Friday morning in Asian trade.

Technically, LBMA Gold Spot continued its positive note above $1830 level could take prices to $1842- $1868. However below $1825 that could see correction upto $1818-$1802 levels.

LBMA Silver Spot is consolidating near the 50-Daily Moving Average at $24.00 levels indicating some sideways momentum in a range of $22.80-$24.50 levels.

Domestic bullion could start flat this Friday morning.

Technically, MCX Gold February gave breakout above 200-DMA and is sustaining above 49000 levels indicating upside momentum. Above 48700 will continue its bullish momentum up to 49550-49900 levels. However below 48900 could pull prices to 48680-47400 levels.

MCX Silver March did not manage to sustain above 64000 levels, where above 63000 levels indicating a positive momentum up to 64200-65300 levels. Support is at 62400-61600 levels.

MCXBULLDEX December is trading above 15100 level above which will continue its marginal upside momentum in a range of 15000-15450 levels.

Source : Equity Bulls

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