Gold / Silver - October 9, 2020 - Reliance Securities

Mr. Sriram Iyer, Senior Research Analyst at Reliance Securities

International Gold and silver prices were trading with modest gains this Friday afternoon trade in Asia, boosted by a weaker dollar and optimism over the latest U.S. stimulus measures.

The U.S Dollar Index was down by 0.25% this Friday afternoon trade in Asia against its peers.

Talks between House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin over the measures resumed on Thursday.

While, President Donald Trump announced that talks with Congress have resumed and also added that the chances of reaching a consensus over the measures were high.

In the intraday session, bullion could track the movement of the U.S. Dollar and trade with gains.

Technically, LBMA Gold Spot on the daily chart is trading in Falling Channel formation where it has reached near resistance on the upper band which is placed at $1920 levels below which could see some downside pressure. However if it sustains above its 21-Daily Moving Average which is placed at $1907 could see a sign for Bullish Reversal. It could trade in a range of $1895-$1922 levels in coming sessions.

LBMA Silver Spot could see a halt near its 21-Daily Moving Average which is placed at $24.65 levels where downside support holds near $23.40 levels.

MCX Gold October contract holds a resistance zone near 65-Day Moving Average which is in the range of 50700-50750 indicating exhaustion of prices from these levels. However 50300 holds immediate support below which could activate a Bearish momentum up to 50150-49900 levels. Resistance is at 50750-50900 levels.

MCX Silver December is sustaining 100-Days Moving Average support near 59070 levels above which will continue upside movement. Silver is likely to trade in a range of $60000-62800 levels.

International silver spot prices were firm this Friday afternoon in Asian trade amid weak U.S. Dollar firm gold prices and the base metals prices.

China returned from the holiday after a week and supported buying sentiments in the markets.

Technically, LBMA Silver Spot could see a halt near its 21-Daily Moving Average which is placed at $24.65 levels where downside support holds near $23.40 levels.

Domestic silver futures on MCX tracked international prices and was trading with modest gains this Thursday afternoon trade.

Technically, MCX Silver December is sustaining 100-Days Moving Average support near 59070 levels above which will continue upside movement. Silver is likely to trade in a range of $60000-62800 levels.

Source : Equity Bulls

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