Bullion - Commodity Snippet - Dec 9, 2020 - Reliance Securities

International gold rose Tuesday supported by expectations of fresh fiscal stimulus in the U.S. Silver ended marginally in the red.

The U.S. Dollar also remained subdued on Tuesday and lent support.

Amid mounting coronavirus cases, the U.S. Congress will vote this week on a one-week stopgap funding bill to provide lawmakers more time to reach a deal on COVID-19 relief. Friday is the deadline before the government shuts down.

However, optimism surrounding vaccine development kept upside capped. Johnson & Johnson could obtain late-stage trial results of a single-dose COVID-19 vaccine it is developing earlier than expected, while Pfizer Inc got emergency approval for its Covid-19 vaccine to use in the United States.

Domestic gold and silver ended mixed on Tuesday, tracking mixed overseas prices.

International and Domestic Outlook

International spot gold and silver prices started marginally weaker this Wednesday morning in Asian trade as encouraging COVID-19 vaccine news reduced its safe-haven appeal, while investors kept a close watch on developments around a U.S. fiscal stimulus deal.

Technically, LBMA Gold Spot could continue its positive momentum where it could consolidate near the 50-Daily Moving Average at $1878 levels which could also act as a resistance. $1856-$1848 will hold as a strong support to the counter.

LBMA Silver Spot holds a resistance near 100-Daily Moving Average which is near $25.00 levels. $23.90-$24.10 will act as support. It is likely to trade in a range of $$23.70-$25.05 levels.

Domestic bullion could start flat to marginally lower this Wednesday morning, tracking the international prices.

Technically, MCX Gold February is trading near 65-Daily Moving Average which is near 50150 levels where 50150-50300 levels will act as resistance. Support is at 49800-49600 levels.

MCX Silver March is trading above its 100-Daily Moving Average at 64370 levels and above which could see a bullish momentum to continue upto 66470-67900 levels. Support is at 64200-63000 levels.

MCXBULLDEX December will continue its marginal upside momentum. However the range will be between 15300-15550 levels.

Source : Equity Bulls

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