Gold - Dec 10, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading weak this Thursday afternoon in Asian trade as the stalemate continues over the additional U.S. fiscal stimulus to ease the economic blow from the COVID-19 pandemic.

However, downside was capped amid new reports emerging regarding the covid-19 vaccine.

U.K.'s Medicines & Healthcare Products Regulatory Agency (MHRA) which initially gave permission for emergency use for Pfizer and BioNTech's vaccine said that patients with a history of anaphylaxis to a medicine or food should not be inoculated.

Markets will now await the U.S. FDA meeting conclusion today on the emergency use of the covid-19 vaccine.

Markets will also await the release of weekly jobless claims and inflation from the U.S. Additionally, markets also await the conclusion from the ECB meeting today, which is expected to launch a fresh pandemic spending programme to support the economy.

Technically, LBMA Gold Spot was unable to sustain above 21-Daily Moving Average near $1842 levels and now could consolidate in a range of $1815-$1848 levels for the rest of the session.

Domestic gold prices are modestly trading weaker this Thursday afternoon, tracking overseas prices.

MCX Gold February holds a resistance near its 21-Daily Moving Average which is at 49510 levels below which will continue its downside momentum. Support is at 48900-48600 levels.

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Source : Equity Bulls

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