Ahead in this week, we may continue to witness huge volatility and gold may trade in the range of 49500 -51000 and Silver may trade in the range of 58200-63100. Whereas on COMEX gold may trade in the range of $1830-$1920 and Silver may trade in the range of $22.70-$26.80. BULLIONS
Bullion counter continued to struggle in Indian markets for the fifth day in a
row amid weak global cues. Investor optimism over COVID-19 vaccine progress had lifted global equity markets to an all-time high. But the risk-on rally has fizzled out amid a surge in virus cases and deadlock in the US over stimulus measures. Encouraging developments relating to COVID-19 vaccines have raised hopes of a more rapid recovery in the global economy, which in result put Gold under pressure.
Post the U.S. election, there is confidence in the global economy, and gold's safe-haven appeal has been easing. Secondly,
pandemic-related uncertainty is going to be decreasing because we're all hoping for the vaccine in the market soon.
Gold traders are now focusing on the next few months with the dark winter amid the pandemic that could impact consumer demand for gold. U.S. Treasury Secretary Steven Mnuchin called for an end to some of the Federal Reserve’s pandemic lending, sparking uncertainty about stimulus programs that have played a key role in reassuring financial markets. If the Fed does start shrinking its assistance program that
could be a bit of a headwind for gold again.
In a letter, Munichin told Fed
Chairman Jerome Powell that $455 billion allocated to Treasury under the
CARES Act should be instead available for Congress to reallocate. His
comments weighed on equities while helping the dollar halt its week-long
slide.
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