Gold - Dec 14, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading in the red this Monday afternoon trade as the bears dominated amid fading hopes for a US coronavirus relief aid.

Further, risk sentiment has improved as investors remained optimistic as the Covid vaccines rolled out during the weekend after the U.S. FDA authorization.

However, looming concerns over the virus growth on both sides of the Atlantic and no-deal Brexit fears capped downside in international markets.

Markets will now await further cues on the passage of the bipartisan coronavirus relief package which could be introduced in the US Congress tonight.

Additionally, gold traders will remain jittery heading into the much-awaited and the final FOMC monetary policy decision of this year.

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 crashed this Monday afternoon trade tracking international prices and a stronger Rupee this Monday.

Technically, MCX Gold February holds a resistance near its 21-Daily Moving Average which is at 49450 levels below which will continue its downside momentum. Support is at 49000-48800 levels. Resistance holds at 49400-49650 levels.

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Source : Equity Bulls

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