(Time Zone: Arizona, USA)
International spot LBMA gold and silver crashed on Friday and ended lower on Monday as growing optimism about a quick vaccine-fuelled economic recovery.
Moderna Inc sought U.S. emergency authorization for its COVID-19 vaccine after a late-stage study showed it was 94.1% effective, with no serious safety concerns.
Gold prices fell despite the dollar hitting its lowest level in two and a half years.
Holdings of SPDR Gold Trust remained unchanged on Friday from Wednesday, while that of iShares Silver Trust fell 0.19% during the same period.
Domestic gold and silver ended weak on Friday and extended losses on Monday in a holiday curtailed trade, tracking weak overseas prices.
International and Domestic Outlook
International spot gold and silver prices have started flat this Tuesday morning in Asian trade.
Vaccine optimism kept upside capped, however, surge in Covid-19 cases has prompted governments to re-impose restrictive measures to combat the pandemic and risk derailing a swift global economic recovery and kept downside limited.
Technically, LBMA Gold Spot is trading on positive note where $1760 is holding support & $1789-$1800 is holding a resistance. Gold is likely to continue its consolidate in a range of $1770-$1800 levels in the intraday session.
LBMA Silver Spot has bounced back from $21.90 levels where it had hold support at previous bottom and has started to trade above $22.50 levels indicating sideways to marginal upside momentum to continue above these levels. It could trade in the range of $22.10-$23.30 levels.
Domestic bullion could start flat and trade range bound this Tuesday morning.
Technically, MCX Gold February has bounced back from a support of 47500 levels where above 48000 will resume some upside momentum. However it could trade in a range of 47700-48250 levels.
MCX Silver March hold a support near 58880 levels where it bounced back and started to trade above 60000 levels indicating for positive momentum up to 60400-61100 levels. Support is at 59900-59000 levels.
MCXBULLDEX December contract could see a bounced back from 14500 level and can trade in sideways momentum in a range of 14550-14900 levels.