Gold - Jan 6, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded off the recent highs with COMEX spot gold prices traded near $1949 on Wednesday keeping firm trading range. Gold February future contract at MCX were trading marginal down to Rs. 51640 per 10 grams on rupee appreciation.

Gold prices continued to witness strong inflows on pandemic worries and weaker dollar. The gold ETF holdings at SPDR gold shares rose to 1187 tonnes. Gold prices witnessed buying after democrats won one of the two seats in the state of Georgia. The speculation over US election runoff in Georgia may keep bullion prices volatile for the day.

We expect gold prices to trade up with COMEX gold resistance at $1970, support at $1930. MCX Gold February support lies at Rs. 51200 with resistance at Rs.52200.