Gold - Dec 21, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded higher with COMEX spot gold prices extended gains to $1900 on Monday trading near $1897 in noon session. Gold February future contract at MCX were trading over up to Rs. 50800 per 10 grams in line with strong global gold prices and rupee depreciation.

Gold prices extended gains on US stimulus expectations by this week as US house will vote today to pass the relief package of $900 billion. Gold prices traded higher on worries over rising virus cases which weigh down vaccine rollout sentiments. The UK imposes strict lockdown measures while lockdown in Europe and other parts of the world may flag economic recovery concerns.

We expect gold prices to trade sideways to up with COMEX gold resistance at $1910, support at $1880. MCX Gold February support lies at Rs. 50200 with resistance at Rs.51200.

Source : Equity Bulls

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