Gold and Silver - Dec 7, 2020 - Angel Broking

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

Last week, Spot Gold prices ended higher by 2.8 percent on account of profound weakness in dollar index and mounting cases of coronavirus cases across the globe assisted the surge in yellow metal prices. United States Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin have urged Congress to approve COVID-19 relief funds without further delay, though Democrats continue to attack a decision by Mnuchin to allow five Fed lending programmes to expire during the pandemic.

Mnuchin said Congress should also consider extending some of the emergency unemployment benefit programmes that are being used by around 11 million workers. Those programmes will expire at the end of this month without Congressional action. Also, alarming increase in the covid19 cases around the globe and many countries in partial lockdowns raised bets on further support by central banks which is likely to aid gold prices in future.

Last week, Spot silver prices gained over 6.4 percent to close at $24.2 per ounce in line with the international Gold prices. Meanwhile Silver prices on the MCX ended surged about 6 percent closing at Rs.62471 per kg.

Hopes over further stimulus infusion by central banks is expected to levy some support to the safe haven asset, Gold. As for today traders can go for BUY in gold at Rs 49100 levels with the stop loss of Rs 48800 levels for the target of 49600 levels. They can also go for BUY in Silver at Rs 63300 levels, with the stop loss of 62700 levels and for the target of 64500 levels.

Source : Equity Bulls

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