Gold and Silver Prices Climb as Long-term Yields Weaken, Gold Nears Rs 61,000 Mark

On November 21, 2023, the prices of precious metals witnessed a notable uptick amidst a decline in long-term yields. The domestic futures for gold were trading positively, resulting in a surge in prices. The Multi Commodity Exchange (MCX) gold futures due on December 5 saw an increase of 0.54% which translates to a gain of Rs 327, settling the price at Rs 60,984 per 10 grams. This positive momentum took place within a trading range characterized by a low of Rs 60,805 and a peak of Rs 60,998 earlier in the day. In tandem with gold, silver futures with a December 5 maturity also rose by Rs 556, corresponding to a 0.77% jump, as prices reached Rs 73,200 per kilogram.

Speculation in the market suggests the recent strength of the bullion is largely due to the robust demand witnessed in the treasury auctions involving the sale of $16 billion worth of 20-year notes. This increase in demand for gold typically occurs when there is a perceived peak in yields, and market players are forecasting possible rate cuts as we anticipate the end of the next quarter. This, in turn, could bolster the sentiment in favor of precious metals like gold and silver.

Expert Analysis and Recommendations

Experts from the commodities field advise traders and investors regarding their gold and silver futures strategy. Neha Qureshi, a seasoned analyst from Anand Rathi Commodities & Currencies, suggests purchasing gold December futures during price dips around Rs 60,700, with a stop-loss order set at Rs 60,300 and an aim for a target price of Rs 61,200. In dealing with silver December futures, Qureshi recommends buying on dips at Rs 73,000, establishing a stop loss at the Rs 72,000 mark, and setting a target point at Rs 75,000.

Amit Khare from GCL Broking echoes the bullish outlook on precious metals, advising traders to initiate fresh buy positions near the support levels specified. According to his analysis, gold December futures have a support threshold around 60600/60300 and may face resistance at 61000/61200. For silver, support is projected at 72500/71800, and potential resistance could present itself at 73500/74000.

Global Perspectives and Local Prices

The international scene also reflects a similar pattern, with COMEX gold showing an uptick of 0.71% at $1994.2 per ounce. Market analysts believe gold may oscillate between the $1950 and $2000 range in the near future, suggesting that investors maintain a vigilant stance. Support levels are cited at $1960, while supply zones are reportedly forming between $1995-$2000. Moreover, a significant resistance is postulated to be at $2010, connected closely to the ten-year yields in the US, which are considered crucial around the 4.38% level.

Spot Prices Across India's Major Cities

The impact of these trends is also visible in the spot gold prices across various major cities in India. For instance, the price for 24-karat gold per 10 grams is listed at Rs 62,685 in Mumbai, Rs 62,795 in Delhi, and slightly different values in other cities like Chennai, Kolkata, and Bengaluru. These prices serve as indicative figures for investors who are recommended to verify the prices with their local jewellers before engaging in transactions.

As the financial world keeps a keen eye on these movements in precious metal prices, investors and traders are encouraged to stay updated with the latest market trends to make informed decisions in the commodities market.

Gold, Silver, Prices