Gold and Silver - Sep 29, 2020 - Angel Broking

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

As expected yesterday gold prices increased by 0.98% and closed at 50,160 levels and silver increased by 2.32% and closed at 60,396 levels. Weakness in dollar supports the gold and silver prices as a safe haven investment.

On Monday, Spot gold ended higher by 1.12 percent to close at $1880.9 per ounce as a weaker Dollar supported the yellow metal; however, solid economic numbers posted by China limited the gains. Gold posted its biggest weekly decline since March'20 as extension of rally in the U.S. Currency kept the Dollar denominated Gold under pressure. However, alarming increase in Covid-19 cases dampened hopes of economic recovery in turn limiting the fall in Gold prices. Political uncertainty ahead of the first of the three presidential debates between U.S. President Donald Trump and Democratic rival Joe Biden kept the markets cautious.

Falling Dollar after a solid rally in the earlier week might support Gold prices in today's session. Markets will have a keen eye on the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden ahead of the November'20 elections. On the MCX, gold prices are expected to trade higher in today's session.

As for today traders can go for buy in gold at Rs 50,000 levels with the stop loss of Rs 49,600 levels for the target of 50,700 levels. They can also go for buy in Silver at Rs 60,500 levels, with the stop loss of 59,500 levels and for the target of 62,000 levels.

Source : Equity Bulls

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