Gold / Silver - 14th September, 2020 - Angel Broking

Mr. Anuj Gupta , DVP - Commodities and Currencies Research, Angel Broking Ltd

"Last week, Spot gold increased by 0.7 percent and on MCX Gold increased by 1.26% and closed at 51319 levels as escalating tension between U.S. & China amid alarming increase in the covid-19 cases around the globe dented the hopes of a paced economic recovery. However, Last week, Spot silver prices dipped lower by 1 percent to close at $26.7 per ounce whereas prices on the MCX ended lower by 0.50 percent closing at Rs.67,928 per kg. In international market gold is trading at $1948 per ounce and silver is trading at $26.81 per ounce. Reported covid-19 cases around the globe have surged over 28.3 million with more than 914,000 deaths. Widening impact of the pandemic on the global economy continued to boost the demand for the safe haven, Gold. Stalling U.S. employment growth and increase in permanent job loss last month weighed on the market sentiments in turn denting hopes of a paced economic recovery.

Moreover, Unemployment claims in U.S. continued to remain at high levels indicating towards a weaker labor market in the world's largest. Geopolitical tension in middle east may also supports the bullions. On the back of increase demand for the safe heaven we are recommending buy in gold and silver. As for today traders can go for buy in gold at Rs 51,200 levels with the stop loss of Rs 50,900 levels for the target of 51,800 levels. They can also go for buy in Silver at Rs 67,800 levels, with the stop loss of 66,900 levels and for the target of 69,300 levels. In the Bullion index "Bulldex" traders can also go for buy at 16100 with the stop loss of 15950 and for the target of 16400."

Source : Equity Bulls

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