Posted On:
2021-01-13 08:56:24
(Time Zone: Arizona, USA)
Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities
International gold prices extended gains on Wednesday morning and early afternoon trade, with the greenback and the US 10-year yield continuing their overnight weakness, which is likely to keep gold buoyed.
Meanwhile, the House of Representatives voted Tuesday night to approve a resolution calling for President Donald Trump to be removed from office through the 25th Amendment in the wake of the violent siege of the US Capitol last week and weighed down on the dollar as well and lifted sentiments.
Further, the US stimulus optimism and surging coronavirus cases in the US, Japan and China also boosts gold's safe-haven appeal.
Investors will look to cues from the U.S. CPI report.
Markets will also pay close attention to the Fed speeches and the speech from ECB President Lagarde tonight.
Technically, LBMA Gold Spot is trading on flat note where it holds a support of 200-Daily Moving Average which is placed at $1840 levels where $1866 level holds a resistance. Therefore, prices could trade in a range of $1847-$1866 levels.
Domestic gold prices rose on Wednesday morning and early afternoon trade, tracking overseas prices.
Technically, MCX Gold February is sustaining above 49000 levels where it holds a hurdle near 49500 above which could see a bullish reversal. However, it could trade in a range of 48900-49500 in the coming session.
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