Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International Gold and silver prices were trading with gains this Wednesday afternoon in Asia despite an impasse over the U.S. Stimulus.
Risk sentiments waned as investors moved into bullion after a COVID-19 treatment would be launched quickly faded.
Meanwhile, bullion also found after China reported its first cases in months and is scrambling to contain a COVID-19 cluster in the port city of Qingdao.
However, upside remained capped as the U.S. Dollar has rebounded over the last 2 sessions.
Looking ahead we see prices trade with an uptick during the rest of the session supported by safe haven appeal.
Technically, LBMA Gold Spot is trading below 21 as well as 50 Daily Moving Average where it is trading below the upper band of Falling Channel formation. Below $1902 will continue to see downside pressure $1874-$1867 levels where upside resistance is at $1905-$1912 levels.
Domestic bullion on MCX is trading with small gains, tracking firm overseas prices.
Technically, MCX Gold December contract has given a sharp fall from Upper band of Rising Channel formation where it has halted near 100-Daily Moving Average which is placed at 50360 levels where below this level could see a Bearish move upto 49900-49300 levels. However bounced back above 50400 could see upside push up to 50700 levels.