Bullion - Commodity Snippet - Dec 15, 2020 - Reliance Securities

International gold and silver prices fell on Monday as the rollout of a COVID-19 vaccine in the United States drove optimism in wider financial markets with investors hoping for a swift economic recovery.

Hopes of a global recovery and a decision to extend trade talks between Britain and the European Union also supported European shares.

However, a solidly lower U.S. dollar index limited some of the selling pressure.

Investors were waiting for the U.S Federal Reserve's two-day policy meeting starting on Tuesday for cues on monetary policy.

Domestic gold and silver ended weak on Monday, tracking overseas prices.

International and Domestic Outlook

International spot gold and silver prices have started marginally higher this Tuesday morning in Asian trade as the U.S. Dollar extended losses this Tuesday morning.

Technically, LBMA Gold Spot is trading on positive note but below $1830 levels could witness more downside momentum. $1820-$1806 levels is the support range. Resistance is at $1840-$1845 levels.

LBMA Silver Spot is consolidating in a narrow range. Support range is $23.60-$22.78 levels. Resistance is at $24.20-$25.05 levels.

Domestic bullion could start flat to marginally higher this Tuesday morning, tracking the international prices.

Technically, MCX Gold February was unable to sustain above 49000 levels indicating a sideways to marginal downside momentum up to 48800-48500 levels. Resistance is at 49100-49300 levels.

MCX Silver March has given breakdown below 64000 levels where it traded in a narrow range indicating a sideways to marginal downside momentum to continue below 63000 levels up to 62050-60700 levels.

MCXBULLDEX December ended on a negative note below 15100 and could continue its Bearish momentum. It could trade in a range of 14900-15250 levels.

Source : Equity Bulls

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