Gold - Dec 22, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading weak this Tuesday morning and early afternoon trade in Asia as the U.S. Dollar Index was firm this Tuesday early afternoon trade.

The Dollar Index extended gains as a fast-spreading new coronavirus strain prevalent in Britain prompted investors to seek safety in the greenback.

However, downside was capped as the U.S. Congress reached agreement on a long-awaited COVID-19 stimulus package earlier in the day.

The bill will become law once passed by the Senate, where it is now under review, and signed by President Donald Trump.

Looking ahead, markets could look to cues from U.S. GDP data due today.

Technically, LBMA Gold Spot did not manage to sustain above 100-Daily Moving Average at the $1902 level where it has given a sharp correction below $1870 levels indicating negative momentum in the counter to continue up to $1862-$1855 levels. Resistance is at $1877-$1882 levels.

Domestic gold was trading weak this Tuesday morning and early afternoon trade in Asia, tracking weak overseas prices.

Technically, MCX Gold February is trading above 65-Daily Moving Average at 50000 levels below which could see a downside pressure up to 49800-49500 levels. Resistance at 50300-50500 levels.

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Source : Equity Bulls

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