Gold - Sep 22, 2020 - Mr. Tapan Patel - Senior Analyst (Commodities), HDFC securities

Gold prices traded lower with COMEX spot gold fell half a percent down to $1900 on Tuesday. Gold October future contract at MCX were trading down by 0.30% to Rs. 50320 per 10 grams limiting downside on rupee depreciation.

Gold prices extended decline on sharp dollar recovery as safe haven buying switched to dollar with rising virus cases and fear of another lockdown in Europe and UK. Gold prices are down nearly 10% from an all-time high hit in early August as hopes of further stimulus dwindled.

We expect gold prices to trade sideways to down with support at $1880 and resistance at $1930. MCX Gold October support at Rs. 49800, resistance lies at Rs. 50800.

Source : Equity Bulls

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