Gold - Jan 4, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading with gains on Monday morning and early afternoon in Asia, as a surge in global COVID-19 cases and the prospect of more countries imposing tighter restrictions pushed investors towards the safe-haven appeal of the yellow metal.

Prices also found support after the dollar was down on Monday morning and early afternoon in Asia.

The U.S. Federal Reserve is scheduled to release the minutes from its December meeting on Wednesday. Investors will be looking for more detail on the discussions about making their forward policy guidance more explicit and the chance of a further increase in asset buying in 2021.

Also, all eyes are on a Jan. 5 runoff election in the state of Georgia to fill 2 Senate seats to decide the party that will control the chamber.

Technically, LBMA Gold Spot has given a breakout above the Falling Channel formation where above $1910 will continue to trade on bullish momentum up to $1935-$1965 levels. Support is at $1910-$1899 levels.

Domestic gold prices are trading with gains on Monday morning and early afternoon tracking overseas prices.

Technically, MCX Gold February has given a breakout above the Falling Channel formation where it has sustained above 100-Daily Moving Average above 50470 levels. Resistance is at 51050-51300 levels. Support is at 50600-50300 levels.

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Source : Equity Bulls

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