(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International spot gold and silver prices rebounded from the lows of the session on Monday as rising covid-19 cases in the U.S. and Europe overshadowed news of a better vaccine.
Prices crashed initially, after Moderna Inc said its experimental vaccine was 94.5% effective in preventing COVID-19.
Meanwhile, gold also found support after President-elect Joe Biden called on Congress to come together and pass a new coronavirus relief package.
Additionally, the euro zone is facing a drawn-out recovery from a deep recession and needs more support from both the European Central Bank and governments, several policymakers said.
Speculators cut their net long position by 10,995 contracts to 110,957 on COMEX gold in week to Nov. 10, CFTC data showed, while, speculators cut their net long position by 41 contracts to 41,406 on COMEX silver in week to Nov. 10.
U.S. Dollar was weak on Monday and lifted bullion.
Domestic gold and silver ended weak, however, was up from the lows of the session, tracking overseas prices.
International and Domestic Outlook
International bullion prices started flat on Tuesday morning in Asian trade as concerns over spiking U.S. coronavirus cases offset pressure from vaccine optimism brought about by a positive vaccine trial data. Weak U.S. Dollar Index capped downside.
Technically, LBMA Gold is trading on positive note where its holding above $1883 and is trading near $1889 indicating for sideways to marginal upside momentum where immediate support is at $1876-$1857 levels & Resistance at $1896-$1905 levels.
LBMA Silver Spot trading on a flat note & in narrow range of $24.07-$25.07 levels where it is likely holding above $24.00 levels indicating for sideways momentum to continue in a range of $23.70-$25.60 levels.
Domestic bullion could start flat this Tuesday morning, tracking a subdued start in the overseas prices.
Technically, MCX Gold December has bounced back from 50140 and ended above the resistance near 50800 levels where it could see further upside movement indicating for sideways momentum in a range of 50550-51200 levels in coming session.
MCX Silver December is trading above 63000 levels indicating upside momentum to continue however downside 63200-62300 will hold a support & 64400-65200 will be a resistance.