Gold - Dec 21, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold was up on Monday morning and early afternoon trade in Asia, supported by news that the U.S. Congress reached a deal on the latest stimulus measures.

The House of Representatives will vote on the bill later in the day, followed by the Senate.

The Dollar Index was also up on Monday morning and early afternoon trade in Asia supported by safe haven appeal for the greenback amid reports of a rapidly spreading new strain of COVID-19 in the U.K., which has seen the country imposing fresh restrictive measures and capped gains for the yellow metal.

Technically, LBMA Gold Spot has entered near 100-Daily Moving Average at $1900 where it is trading with an increase in volume activity. It could see some resistance $1909-$1920 levels. Support $1895-$1881 levels.

Meanwhile, back home mcx February gold futures are trading with solid gains this Monday morning and early afternoon trade tracking the overseas prices.

Reuters reported that physical gold was sold at a discount in India during the previous week as a rebound in local prices and weighed on demand.

Technically, MCX Gold February is trading near 100-Daily Moving Average at 50800 levels which will continue its upside momentum upto 51000-51350 levels. Support is at 50600-50400 levels.

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Source : Equity Bulls

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