Mr. Anuj Gupta - DVP - Commodities and Currencies Research, Angel Broking Ltd
"On Thursday, Spot gold ended marginally higher by 0.24 percent but headed towards a weakly decline as strengthening of the U.S. Dollar made the yellow metal undesirable for other currency holders. Reinforcement of lockdown in the Euro-zone reflecting the alarming increase in Covid-19 cases and slowdown in the business sector in U.S. & Europe dampened hopes of a paced economic recovery which levied some support for Gold prices. In August'20, Home sales in U.S. grew to their highest levels in 14 years which supported the market sentiments. Alarming increase in covid-19 cases in Europe and Britain pushed the Dollar higher against the basket of currencies in turn limiting the gains for Gold.
Spot silver ended higher by 1.6 percent to close at $23.2 per ounce while prices on the MCX ended higher by 1.95 percent closing at Rs.59629 per kg.
Rise in U.S. unemployment claims and hopes over additional stimulus by U.S. is expected to levy some support for Gold prices. On the MCX, gold prices are expected to trade higher in today's session.
As for today traders can go for buy in gold at Rs 49,500 levels with the stop loss of Rs 49,150 levels for the target of 50,200 levels. They can also go for buy in Silver at Rs 58,500 levels, with the stop loss of 57,500 levels and for the target of 60,500 levels."