Gold - Dec 4, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading with small gains this early Friday afternoon trade in Asia as investors were cautiously optimistic over the latest U.S. stimulus measures.

Safe haven appeal of metal improved after Pfizer Inc cut the number of COVID-19 vaccine doses from 100 million to 50 million after reports of supply chain issues.

Prices also found support after the U.S Dollar continued to struggle near 21/2 year lows as signs of progress toward U.S. fiscal stimulus and optimism about COVID-19 vaccines kept investors upbeat.

Markets will await the non-farm payroll number due tonight for the latest signs of the recovery losing momentum.

Investors will also be looking to cues from the outcome of Brexit trade deal negotiations.

Technically, LBMA Gold Spot is trading near 21-Daily Moving Average at $1846 levels below which could see some sideways momentum. However above it could take prices up to $1860-$1878 levels. Support is at $1836-$1823 levels.

Domestic gold prices are also trading with small gains this early Friday afternoon trade, tracking the overseas prices.

Technically, MCX Gold February could see some hurdle near 49650-49700 levels which is its 21-Daily Moving Average. However above it could rally up to 50150-$50400 levels.

Meanwhile, international and domestic silver are trading with small gains this early Friday afternoon trade.

Technically, LBMA Silver Spot is trading above 21 as well as 50-Daily Moving Average at $24.30 levels indicating some sideways to marginal upside momentum where it could trade in a range of $23.50-$24.95 levels.

MCX Silver March is trading above 64000 levels, where above 63500 levels indicating positive momentum up to 64250-66300 levels. Support is at 62900-62000 levels.

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Source : Equity Bulls

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