Gold - Feb 22, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading higher this Monday morning and early afternoon trade in Asia.

However, upside remained capped as benchmark U.S. Treasury yields climbed to a near one-year peak.

Prices found support as physical demand from India climbed last as prices crashed last week and lent support.

Meanwhile, as China returns from the Lunar New Year holiday demand from one of the largest consumers could also boost prices.

On the central bank front, Federal Reserve Chairman Jerome Powell will deliver the Fed's semi-annual monetary policy report to the Senate Banking Committee on Tuesday. Investors will be watching for any signs of concerns over higher long-term borrowing costs on Powell's part.

Technically, LBMA Gold Spot is trading on a positive note above $1790 levels indicating sideways to marginal upside momentum upto $1799-$1811. Support is at $1784-$1777 levels.

Domestic gold prices are also trading higher this Monday morning and early afternoon trade, tracking overseas prices.

However, upside was capped as the domestic unit appreciated significantly this Monday against the U.S. Dollar.

Technically, MCX Gold April is sustaining above 46200 indicating some upside movement upto 46500-46650 levels. Support is at 46200-46050 levels.

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Source : Equity Bulls

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