Gold - Dec 9, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices gave up some of gains made in Tuesday's session and was trading in the red this Wednesday afternoon in Asian trade over vaccine hopes.

Stalemate over the U.S. stimulus aid package also weighed on prices.

However, downside was capped as the U.S. Dollar Index was trading weak in this Wednesday afternoon trade.

Markets will look ahead to the couple of important events over the next 2-3 weeks.

Across the Atlantic, Brexit trade deal talks between the U.K. and the European Union are also working to strike a deal before the end-of-year deadline.

The European Central Bank (ECB) and the Federal Reserve are also due to hand down their final policy decisions for 2020.

Technically, LBMA Gold Spot yesterday retreated from 50-Daily Moving Average near $1877 levels and now could consolidate in a range of $1848-$1874 levels for the rest of the session.

Domestic gold prices are also trading weaker this Wednesday afternoon trade, tracking weak overseas prices.

Technically, MCX Gold February was unable to cross above 65-Daily Moving Average near 50150 levels which will act as a major resistance now. Support is at 49500-49300 levels. Markets could remain within the support and resistance for the rest of the session.

Disclaimer: The recommendations, if any, made herein are expression of views and/or opinions and should not be deemed or construed to be neither advice for the purpose of purchase or sale of any security, derivatives or any other security through RSL nor any solicitation or offering of any investment /trading opportunity on behalf of the issuer(s) of the respective security(ies) referred to herein. These information / opinions / views are not meant to serve as a professional investment guide for the readers. No action is solicited based upon the information provided herein. Recipients should rely on information/data arising out of their own investigations. Readers are advised to seek independent professional advice and arrive at an informed trading/investment decision before executing any trades or making any investments. While due care has been taken to ensure that the disclosures and opinions given are fair and reasonable, none of the directors, employees, affiliates or representatives of RSL shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information / opinions / views contained herein.

Source : Equity Bulls

Keywords