Mr. Anuj Gupta - DVP - Commodities and Currencies Research, Angel Broking Ltd
Last week, Spot gold ended lower by 4.2 percent as strengthening of the U.S. Dollar and uncertainty over further stimulus infusion by the U.S. policy makers pressurized Gold prices. The U.S. Federal Reserve projecting a paced recovery in the coming and home sales in August'20 rising to their highest levels in 14 years underpinned the Dollar. Moreover, alarming increase in covid-19 cases in Europe and Britain pushed the greenback higher against the basket of currencies denting the appeal for the dollar denominated Gold. However, alarming increase in Covid-19 cases dampened hopes of economic recovery in turn limiting the fall in Gold prices.
Spot silver ended higher by 13.3 percent to close at $23.2 per ounce while prices on the MCX ended lower by 12.2 percent closing at Rs.59629 per kg.
The dollar is also trading lower on lack of big moves ahead of the U.S. presidential debate on Tuesday and the release of U.S. economic data later in the week. Political uncertainty also pressurize the dollar which supports the demand of Gold as a safe heaven investment.
As for today traders can go for buy in gold at Rs 49,300 levels with the stop loss of Rs 48,900 levels for the target of 50,200 levels. They can also go for buy in Silver at Rs 58,200 levels, with the stop loss of 57,400 levels and for the target of 60,000 levels.