Gold - Dec 17, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading in the green in Thursday morning and early afternoon trade in Asia supported by dovish statements from the Fed.

The U.S. Federal Reserve's pledge to keep interest rates low and said that the central bank would not hesitate to expand support if necessary.

Gold also took support after the dollar was down in Thursday morning and early afternoon trade.

Investors also continue to monitor progress on the latest U.S. stimulus measures which could pass by this weekend.

The Bank of England, will hand down it's policy decisions later in the day. Decision from the Bank of Japan will follow on Friday.

Meanwhile, along with the central bank's monetary policy decisions, the markets will look for cues from the labour market data in the form of weekly jobless claims data.

Technically, LBMA Gold Spot is trading near the 50-DMA at $1870 levels and above which could see a breakout up to $1885-$1897 levels. Support is at $1865-$1858 levels.

Domestic gold prices are also trading with modest gains this Thursday morning and early afternoon trade, tracking overseas prices.

Technically, MCX Gold February is holding near 65-Daily Moving Average at 50000 levels above which will continue its upside momentum upto 50300-50550 levels. Support is at 49600-49400 levels.

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Source : Equity Bulls

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