Bullion - Commodity Snippet - Dec 8, 2020 - Reliance Securities

International gold and silver rose Monday supported by expectations of fresh fiscal stimulus in the U.S.

U.S. lawmakers sought to hammer out an agreement on infusing long-awaited relief through a $908 billion bill.

Safe haven appeal for bullion also pushed prices higher yesterday amid heightened tensions between the United States and China.

Reuters reported that the United States was preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing's disqualification of elected opposition legislators in Hong Kong.

Meanwhile, the Japanese government will compile a new COVID-19 economic stimulus package totalling 73.6 trillion yen ($708 billion) with fiscal measures at 40 trillion yen ($385 billion), Prime Minister Yoshihide Suga said.

SPDR Gold Trust ETF said its holdings fell 0.25% to 1,179.78 tonnes on Monday from 1,182.70 tonnes on Friday.

Domestic gold and silver surged higher on Monday, tracking firm overseas prices.

International and Domestic Outlook

International spot gold and silver prices have started flat to marginally higher this Tuesday morning in Asian trade as mounting COVID-19 cases and fresh restrictions boosted hopes for a U.S. pandemic stimulus package.

Technically, LBMA Gold Spot has given a breakout above $1850 levels where above it could trade on positive note up to $1872-1895 levels. However below $1855 could see some correction upto $1834-$1819 levels.

LBMA Silver Spot is trading above 21 as well as 50-Daily Moving Average at $24.50 levels indicating some sideways to marginal upside momentum where it could trade in a range of $23.80-$25.60 levels.

Domestic bullion could start flat to marginally higher this Tuesday morning, tracking the international prices.

Technically, MCX Gold February gave a breakout with huge volume activity indicating a strong momentum in the counter. In addition it has given a breakout above 49500 levels where further upside could see 50080-50300 levels. Support is at 49700-49500 levels.

MCX Silver March has bounced back from 62380 levels and gave a close above 65300 with more than 2.5% gains. Resistance could see near 66350-67200 levels & Support at 64600-63300 levels.

MCXBULLDEX December is trading above 15450 level above which will continue its marginal upside momentum in a range of 15300-15650 levels.

Source : Equity Bulls

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