“Gold prices remain choppy inside $1875-1780 levels and breaking any of the sides would suggest fresh direction to the commodity. A direct drop below $1780 a short term bearish signal,” Geojit Financial said in a note.
MCX Gold prices resistance at ₹48,060 per 10 gram while has support at ₹46,220 levels, the brokerage said.
Supporting gold is increased expectations of additional stimulus measures in US and hopes of higher demand from China and India, Kotak Securities said in a note.
“With no fresh factors, gold may continue to be affected by trend in US dollar and we may see some more correction if US currency manages to strengthen,” the brokerage said.
Asian equity markets were firm today as investors are betting that coronavirus vaccine rollouts and US government spending will boost the economic recovery,
Investors are also cheering positive GDP reports, with Japan’s economy expanding more than expected and Singapore’s economy contracting less than initially estimated in the fourth quarter. US Treasury Secretary Janet Yellen spoke to her G7 counterparts last week and called for continued fiscal support to secure the economic recovery.
Among other precious metals, silver gained 0.4% to $27.46 an ounce while palladium climbed 0.1% to $2,389.67.