Gold - Dec 16, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading with small gains in early Wednesday afternoon in Asia supported by hopes that the U.S. stimulus measures could be passed this week.

Additionally, the U.S. Dollar continued to struggle near its 2 year lows and lifted sentiments.

Upside was capped as the rapid progress in COVID-19 vaccine rollouts sparked hopes for a quick economic recovery.

Meanwhile, investors will be awaiting fresh cues from the Federal Reserve's policy decision.

Technically, LBMA Gold Spot is trading on a positive note above the 21-DMA at $1835 levels. Further upside it could see $1864-$1871 levels. Support is at $1847-$1839 levels.

Domestic gold prices are trading with gains in early Wednesday afternoon, tracking gains in the overseas prices.

Technically, MCX Gold February is trading above its 21-Daily Moving Average at 49200 levels above which will continue its upside momentum upto 49900-50150 levels. Support is at 49400-49200 levels.

Strategy for Gold February will be Buy above 49500-49530 SL 49350 TGT 49800.

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Source : Equity Bulls

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