Gold - Oct 21, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded higher with COMEX spot gold prices extended gains above $1920 on Wednesday. Gold October future contract at MCX were trading half a percent up to Rs. 51203 per 10 grams for the day supported by rupee depreciation.

Bullion prices traded higher on dollar decline amid rising hopes for US stimulus package before US elections as difference between US Democrats and Republicans seems to be narrowing down. The fall in European equity indices over worries over second wave of virus infections also boosted buying in Gold.

We expect gold prices to trade up for the day with COMEX gold resistance at $1940, support at $1905. MCX Gold October support lies at Rs. 50900 with resistance at Rs. 51600.