Gold - Feb 2, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices eased on Tuesday morning and early afternoon trade as investors booked profits from Monday's rally.

On the stimulus front, hopes for further U.S. stimulus packages were boosted after a meeting between U.S. President Joe Biden and a group of ten Republican senators to discuss a downsized COVID-19 stimulus package proposed by the group.

Meanwhile, the U.S. Dollar Index was flat this Tuesday morning and early afternoon trade but has shown more resilience over the last few trading days and could keep upside limited.

However, lack of any other or major triggers could keep the markets in a broad trading range till the payroll data on Friday.

Technically, LBMA Gold Spot is facing a hurdle to cross above the 21-Daily Moving Average at $1861 levels and below which could see a downside pressure up to $1852-$1839 levels. Resistance is at $1863-$1870 levels.

Domestic gold prices are trading weak on Tuesday morning and early afternoon trade, tracking weak overseas prices.

Technically, MCX Gold April is trading on a negative note where below 48500 could see further downside fall upto 48000-47800 levels. Resistance is at 48600-48800 levels.

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Source : Equity Bulls

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