Gold, Silver Prices On November 23: What Is Influencing Precious Metals Performance Today?

As the dollar weakened and treasury yields dipped on Thursday, prices of precious metals like gold and silver picked up momentum. Spot gold traded near $2,000 an ounce, while US gold futures edged higher as well. At home, both MCX gold and silver futures surged over Rs 61,100 per 10 grams and Rs 72,900 per 1 kg mark respectively. For today, these commodities are expected to trade volatile.

MCX gold futures expiring on December 5 are up by Rs 122 or 0.20% to trade at Rs 61,146 per 10 grams, at the time of writing. The bullion ranged from Rs 61,179 to Rs 61,033 respectively.

Meanwhile, silver futures traded at Rs 72,984 per 1 kg, up by Rs 158 or 0.22%. This pristine metal crossed the Rs 73,000 mark in the early trade by touching the day's high of Rs 73,034.

Among the international prices, spot gold in London was up 0.3% to trade at $1,995.39 an ounce compared to the previous session's print of $1,989.91 an ounce. Spot gold's day's range is between $1,989.40 to 1,998.31 an ounce.

US gold futures were up by 0.2% to trade at $1,995.90 an ounce, compared to the previous session's print of $1,992.80 an ounce. Broadly, the day's range is between $1,991.15 - 1,999.25 an ounce.

Rahul Kalantri, VP of Commodities, Mehta Equities: "We anticipate that gold and silver prices will remain volatile in today's session. Gold has support at $1,981-$1,968, with resistance at $2,008-$2,021. Silver has support at $23.50-$23.35, while resistance is at $23.86-$24.05. In INR, gold has support at Rs 60,920-Rs 60,760, with resistance at Rs 61,280 and Rs 61,470. Silver has support at Rs 72,050-Rs 71,380 and resistance at Rs 73,570 and Rs 74,130."

US Federal Reserve has shown a cautious tone in the latest minutes of the meeting, as they believe inflation remains elevated and above their target level of 2%. This lifted the dollar yesterday, however, demand for the greenback dulled on Thursday on the backdrop of bouyed demand in bullion.

Also, the CME's FedWatch Tool indicated that traders are widely expecting for US Fed to keep rates unchanged in December but they dialled back on expectations of rate cuts next year.

Kalantri added, "Gold and silver prices experienced a decline on Wednesday, influenced by substantial gains in the U.S. dollar index and a sharp drop in crude oil prices. Despite disappointing economic data, gold prices continued to test support around $2,000 per ounce but were unable to sustain it."

He further said the U.S. jobless claims for the last week fell to 209,000, surpassing the expected claims of 226,000. Crude oil prices also experienced a significant decline due to the postponement of the OPEC+ meeting over the weekend, contributing to the downward pressure on gold and silver prices. Traders exercised caution ahead of the U.S. Thanksgiving Day holiday, leading to profit booking. However, the negative U.S. core durable goods and durable goods orders data provided support for precious metal prices.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.