(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold and silver prices are trading flat this early Wednesday afternoon in Asia.
Markets started on a weak note early Wednesday extending losses from Tuesday weighed down by more optimism in regard to the economy and less political concern moving forward.
Expectations of a smooth transition from the current Trump presidency to a Biden presidency has improved risk appetite in the market and has weighed on the safe haven appeal of the metal.
Markets also overlook the weakness of the U.S. Dollar Index which was weighed down after reports that former Federal Reserve Chair Janet Yellen is expected to be nominated as Treasury Secretary, which has increased expectations of large fiscal stimulus.
However, markets found support at the lows of the session near to the important support level of $1800/ounce and was last seen trading with marginal gains this Wednesday afternoon in Asia.
Markets will look to cues from U.S. GDP, durable good order, new home sales and jobless claims of data to be released this Wednesday.
Technically, LBMA Gold Spot has reached a 200-Daily Moving Average which is placed at $1798 levels from where a bounced back move can be expected up to $1813-$1820. However below which could see a sharp drift in prices up to $1788-$1775 levels.
On the charts, MCX Gold December holds a support near 200-Daily Moving Average near 48250 levels where prices could see some consolidation phase or can see a bounced back activity up to 48700-49100 levels. However below 48200 could see a sharp correction up to 47900-47400 levels.
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