Gold and Silver - October 1, 2020 - Angel Broking

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

On Wednesday, Spot gold ended lower by 0.65 percent to close at $1885.4 per ounce as a strengthening of the U.S. Dollar and solid recovery in China dented the appeal for the safe haven, Gold. Investors charged to take shelter under the U.S. Dollar after the first the first presidential election debate between U.S. President Donald Trump and Democratic rival Joe Biden ahead of the November'20 elections turned into a brawl. Gold headed towards its worst month in four years as extension of rally in the U.S. Currency kept the Dollar denominated Gold under pressure. China's industrial activities also gained momentum reflecting the improvement in overseas demand which further boosted the risk appetite amongst investors. U.S. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi working on bridging the gap raised hopes of additional stimulus aid by U.S. limited the fall in Gold prices. Moreover, alarming increase in the Covid-19 cases dampened hopes of the global economic recovery also levied some support for the yellow metal.

Spot silver ended lower by 3.9 percent to close at $23.2 per ounce while prices on the MCX dipped over 4 percent closing at Rs.59919 per kg.

Easing Dollar and hopes over additional stimulus might levy some support for the yellow metal. 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 50,300 levels with the stop loss of Rs 50,000 levels for the target of 50,900 levels. They can also go for buy in Silver at Rs 60,000 levels, with the stop loss of 59,200 levels and for the target of 61,500 levels.

Source : Equity Bulls

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