Gold - Feb 5, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading marginally higher this Friday morning and early afternoon trade in Asia, recovering from its lowest level in more than two months.

However, upside was capped thanks to a strengthening dollar.

The U.S. Dollar Index was flat this Friday morning and early afternoon, but surged higher during the previous session to a more than 2-month peak, tracking gains in the long-term U.S. Treasury yields and on confidence in the U.S. economic outlook with the possibility that today's jobs report will be stronger than expected.

Markets will keenly await the payroll numbers in the evening.

Technically, LBMA Gold Spot has given a sharp correction breached an important support zone of $1800 level indicating a negative trend to continue upto $1790-$1781 level. Resistance is at $1804-$1823 levels.

Domestic gold prices are trading higher this Friday morning and early afternoon trade, tracking the overseas markets.

Technically, however, MCX Gold April is sustaining below 47000 level which indicates a strong Bearish trend in the counter. Support is at 46500-46200 & Resistance is at 46900-47200 level.

Strategy for the rest of the session is Sell Gold April contract near 46900-46920 with a stoploss at 47100 and target at 46500.

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Source : Equity Bulls

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