Gold - Dec 22, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded down with COMEX spot gold prices fell below $1870 to $1868 on Tuesday. Gold February future contract at MCX were trading down to Rs. 50155 per 10 grams in line with weak global gold prices and rupee appreciation.

Gold prices declined on stronger dollar index as fears over a new strain of Covid-19 virus found in UK spread panic across the globe which triggered selling in Euro and Pound. The imposed lockdown in UK and travel restrictions across globe outweighed US stimulus hopes.

We expect gold prices to trade sideways to down with COMEX gold resistance at $1880, support at $1850. MCX Gold February support lies at Rs. 49800 with resistance at Rs.50400.

Source : Equity Bulls

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