Gold - Jan 8, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded down with COMEX spot gold prices fell below $1890 per ounce on Friday losing more than 1%. Gold February future contract at MCX were trading down to Rs. 50242 per 10 grams with fall in COMEX prices.

Gold prices witnessed sharp selling on Friday as dollar index rebounded above 90 mark as traders unwind short positions with rise in treasury yields. However, we expect bullion prices to limit downside on stimulus push as path for US President Joe Biden is clear after taking control over senate.

We expect gold prices to trade down with COMEX gold resistance at $1910, support at $1860. MCX Gold February support lies at Rs. 49700 with resistance at Rs.50400.