Vaccine hopes push gold below Rs 49,000 per 10 gram

Tue Nov 24 2020

Futures of gold, which were soaring well above the ₹ 50,000 mark till sometime back amid the weak economic scenario, have now started to ease and have fallen below the ₹ 49,000-mark amid optimism regarding vaccines for the novel Coronavirus.

The December contract of gold on the Multi Commodity Exchange (MCX) is currently trading at ₹ 48,975 per 10 gram, lower by ₹ 505 or 1.02 per cent from its previous close.

Similarly, domestic futures of silver also continued its downward trend on Tuesday and its December contract on the MCX is currently at ₹ 59,825 per kg, lower by ₹ 700 or 1.16 per cent from its previous close.

Anuj Gupta, DVP for Commodities and Currencies Research at Angel Broking Ltd said that noted that the decline has been on the back of recovery in global equity market and development on the front of corona virus vaccine. Gold ETF holding is also falling more than a million ounce in this month, he said.

"The trend of gold and silver now become down and expectation of safe haven demand of this asset may fade out. As for today traders can go for sell in gold at ₹ 49,800 levels with the stop loss of ₹ 50,100 levels for the target of 49,000 levels," Gupta said.

In the international market, gold may test $1780 to $1800 per ounce levels soon, according to him.

He was of the view that traders can also go for sell in Silver at 61,000 levels, with the stop loss of 61,800 levels and for the target of 59,800 levels.

Optimism has been fueled in the global markets after the recent series of positive announcements on the vaccine front.

AstraZeneca on Monday announced Monday that positive high-level results from an interim analysis of clinical trials of the Covid-19 vaccine candidate in the UK and Brazil showed it was highly effective in preventing the disease, the primary endpoint, and no hospitalisations or severe cases of the disease were reported in participants receiving the vaccine.

Source: https://www.businessinsider.in/