Gold / Silver - 19th October 2020 - Angel Broking

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

"Last week, spot Gold prices ended lower by 1.6 percent & Spot silver ended lower by 3.8 percent to close at $24.2 per ounce as strengthening of the U.S. currency made the Dollar denominated Gold less appealing for other currency holders. The Dollar rallied after U.S. Treasury Secretary Steve Mnuchin stated that the chances of a deal over the new coronavirus relief fund seemed to be unlikely before the November'20 elections. Gold prices were further pressurized as China's economy continued to expand in September'20 reflecting the improvement in overseas demand which boosted the risk appetite amongst investors. However, the International Monetary Fund expressing worries over the outlook for many emerging markets as the virus continued to spread limited the losses for the safe haven, Gold. Hopes over additional corona relief fund by U.S. before the upcoming elections is expected to support Gold. 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 50000 levels for the target of 50800 levels. They can also go for buy in Silver at Rs 61,000 levels, with the stop loss of 60,200 levels and for the target of 62,100 levels."

Source : Equity Bulls

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