(Time Zone: Arizona, USA)
Mr. Anuj Gupta - DVP - Commodities and Currencies Research, Angel Broking Ltd
Yesterday Gold and Silver increased sharply on the back of expectation of covid - 19 stimulus package before US election. Correction in Dollar index also supportive for Gold as a safe haven asset. Gold increased by 0.83% and closed at 51333 levels and silver increased at 0.80% and closed at 63,629 levels. In international market gold is trading at $1914 per ounces and Silver is trading at $24.80 per ounces.
Lower interest rates and enormous amount of liquidity infusion by global central banks helped Gold gains over 25 percent in 2020 as it is considered as a hedge against inflation and currency debasement. Prices also found some support as reinforcement of the pandemic triggered curbs in Europe and global cases surpassing 40.8 million boosted the appeal for the safe haven, Gold.
Outlook No major signs of a deal over the additional corona relief fund by U.S. before the upcoming elections might weigh on the safe haven, Gold. On the MCX, gold prices are expected to trade higher in today's session.
On domestic front the physical demand of gold and silver increasing on Festival demand. As for today traders can go for buy in gold at Rs 50,900 levels with the stop loss of Rs 50650 levels for the target of 51500 levels. They can also go for buy in Silver at Rs 62,600 levels, with the stop loss of 61,900 levels and for the target of 63,600 levels. We expect gold may test $1950 and Silver may test $26.50 levels soon.