Gold and Silver Prices Climb amid Decline in Long-Term Yields; Gold Approaches Rs 61,000 Mark

Gold and Silver price today (November 21, 2023): On the domestic front, trading for precious metals showed an upbeat mood, with gold and silver prices witnessing a surge as long-term yields weaken.

MCX gold futures for December 5 experienced a notable increase, rising by 0.54 percent, which translates to an uptick of Rs 327, bringing the price to Rs 60,984 per 10 grams. Throughout the day, prices have fluctuated between Rs 60,805 and Rs 60,998. Similarly, December 5 silver futures saw an increase of 0.77 percent or Rs 556, thus being traded at Rs 73,200 per kilogram.

Amid the declining long-term yields, gold had an overnight bump, bolstered by a strong demand at the treasury auctions where $16 billion of 20-year notes were sold. Since yields are projected to peak beyond 5 percent this quarter, market players anticipate interest rate cuts possibly beginning from the next quarter, an expectation that boosts the appeal for bullion, as explained by Neha Qureshi, a Senior Technical & Derivative Research Analyst at Anand Rathi Commodities & Currencies.

Expert Trading Insights

Analysts like Qureshi are advising investors to purchase gold December futures on dips at Rs 60,700, setting a stop loss at Rs 60,300 and targeting a rise to Rs 61,200. For December silver futures, a recommended strategy is to buy on dips at Rs 73,000, maintain a stop loss at Rs 72,000, and set the target price at Rs 75,000.

Analysts such as Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL) Broking, are suggesting traders to create new buy positions in gold and silver, considering the current strength of the bullions. For Gold December futures, Khare identifies the support levels at 60600/60300 and resistance levels at 61000/61200, while for Silver December futures, support is seen at 72500/71800 and resistance at 73500/74000.

Internationally, COMEX gold rose by 0.71 percent, pricing at $1994.2 per ounce. The near-term trading range for gold is expected to be between $1950 and $2000. Praveen Singh, Associate VP at Sharekhan by BNP Paribas, forecasts support at around $1960 with a supply zone between $1995-$2000. He also flagged a notable resistance just above the cycle peak at $2010 and highlighted 4.38 percent as a critical level for US ten-year yields.

Spot Gold Prices Across Major Indian Cities

In the Indian market, spot gold prices differ across cities. Here are some indicative prices for 24k gold (per 10 grams) for November 21, 2023: Mumbai - Rs 62,685, Delhi - Rs 62,795, Chennai - Rs 62,770, Kolkata - Rs 63,025, Bengaluru - Rs 62,810, Hyderabad - Rs 62,795, Ahmedabad - Rs 62,795, Bhopal - Rs 62,765, Visakhapatnam - Rs 62,800, Jaipur - Rs 62,705, Lucknow - Rs 62,820, Coimbatore - Rs 62,820, Madurai - Rs 62,860. It's prudent for investors to verify these prices with their local jewellers before making any transactions.

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