Gold - Dec 11, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading flat this Friday afternoon trade as weak U.S. Dollar, rising covid-19 cases and weak U.S. jobs data cast doubts over a swift economic recovery offset optimism surrounding the roll out of the covid-19 vaccines.

U.S. Food and Drug Administration recommended approval of the pharma's Covid-19 vaccine for emergency use.

Markets will now look to cues from the Fed meeting next week and any fresh triggers from the U.S. fiscal stimulus talks.

A U.S. Senate vote on a stopgap measure to keep the government running is likely to go to the Friday deadline. Many investors believe that the talks could extend till Christmas.

Technically, LBMA Gold Spot is trading below 21-Daily Moving Average indicating a Bearish momentum for the rest of the session. Support is at $1826-$1816 levels. Resistance is at $1845-$1854 levels.

Domestic gold prices were also flat this Friday, tracking flat overseas prices.

Technically, MCX Gold February holds a resistance near its 21-Daily Moving Average which is at 49400 levels below which will continue its downside momentum. Support is at 48900-48600 levels. Resistance holds at 49300-49650 levels.

Strategy for Gold February Sell 49200-49230 SL 49400 TGT 48900.

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Source : Equity Bulls

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