Gold - Dec 18, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading weak this Friday morning and early afternoon trade in Asia amid profit booking and marginal recovery of the U.S Dollar from yesterday's lows.

Expectations for additional stimulus measures in the U.S. also continue to grow and kept downside capped.

Meanwhile the continued rise in covid-19 cases in the U.S. has weighed on the labour market. Latest data has revealed that jobless claims rose to 885,000, more than the 862,000 claims filed during the previous week.

Meanwhile, the Bank of Japan in its policy decision earlier in the day, keeping its interest rate unchanged at -0.10%.

Technically, LBMA Gold Spot is sustaining well above $1871 where its heading towards 100-DMA at $1905 levels. Support is at $1873-1866 levels.

Domestic gold prices were trading weak this Friday morning and early afternoon trade tracking weak overseas prices.

Technically, MCX Gold February gave a breakout above 50-Daily Moving Average at 50150 levels which will continue its upside momentum upto 50500-50650 levels. Support is at 50100-49900 levels.

Strategy for Gold February Buy near 50100 SL 49900 TGT 50600.

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Source : Equity Bulls

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