Gold - July 13, 2021 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International gold prices are trading with small gains on Tuesday early afternoon trade in Asia as the dollar weakened ahead of U.S. inflation data that could indicate when asset tapering by the U.S. Federal Reserve is likely to begin.

Rise in covid-19 cases, especially the Delta variant has also lent support.

Investors await the consumer price index for June, due later in the day, as well as the producer price index due later in the day.

Meanwhile, the New York Federal Reserve's monthly survey said investors widely expect the economy to continue its rapid recovery from COVID-19 over the next year.

Forecasts for inflation, earnings, income growth and spending all also increased in June, according to the report.

Meanwhile, investors also await the Fed Chairman Jerome Powell testimony before Congress this week.

Technically, LBMA Gold could trade in sideways to marginal upside momentum where support is at $1799-$1787 levels. Resistance is at $1813-$1822 levels.

Domestic gold prices are trading with small gains on Tuesday early afternoon trade, tracking overseas prices.

Technically, MCX Gold August holds a strong support near 47800-47600 levels. Resistance is at 47900-48100 levels.

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Source : Equity Bulls

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