Gold - Jan 11, 2021 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC Securities

Gold prices traded higher with COMEX spot gold prices recovered to $1852 per ounce on Monday. Gold February future contract at MCX were trading over half a percent up to Rs. 49297 per 10 grams supported by weaker rupee.

Gold prices rebounded from the lows made on Friday despite of stronger dollar as worries over rising corona virus cases boosted buying in yellow metal. Earlier, Gold prices declined as rise in US long term bond yields triggered short unwinding in dollar. The traders and investors rushed to book profits in precious metals on risk-on sentiments with buying in dollar.

We expect gold prices to trade sideways to down with COMEX gold resistance at $1880, support at $1820. MCX Gold February support lies at Rs. 48900 with resistance at Rs.49700.