Gold & Silver

Bullion report: Gold, silver prices return to positive territory

Rutam Vora Ahmedabad | Updated on November 24, 2021

Gold recovers from lower levels in global market

Gold futures opened firm on Wednesday at ₹47,616 per 10 grams, up ₹182 from the previous close of ₹47,434 for MCX December contract, after a sustained slide over the past one week. Silver futures also opened firm at ₹62,777 a kg, up ₹268 from ₹62,509 for MCX December contract on Wednesday.

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Gold gained strength in the international market as CME gold December Futures gained 0.5 per cent on November 23 to $1,793.1.

Fast Four Bullion

1. Broader weakness with marginal recovery: After losing a crucial psychological level of $1,800 an ounce (oz is equal to approx 28.3 grams), CME gold futures gained strength from prior settle level of $1,783.8 and last quoted up by $9.3 or 0.52 per cent to $1,793.1 in early trades on Wednesday. Analysts maintained that the recent spike in Covid-19 cases in parts of Europe, coupled with possibilities of an economic slackness in China, has provided support to the falling prices of gold. However, the overall trend remains negative with the yellow metal losing 5.2 per cent in just six trading sessions from $1,879 on November 16 to a low of $1,781 on Tuesday.

2. Gold futures firm on MCX: Gold and Silver Futures made positive opening on Wednesday and maintained the positive territory. The firmness in MCX gold futures is seen as a reflection of international gold gaining strength from lower levels. However, analysts maintain that the sentiment remains cautious to negative.

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MCX gold December Futures last quoted at ₹47588, up ₹154 from previous close.

MCX Silver December Futures too maintained strength and last quoted at ₹62,710, up ₹201 from the previous close.

3. Spot Market: Spot gold continued the slide. In Indian markets, Gold prices quoted at ₹47,826 at the closing on November 23, down by 2 per cent from previous day’s quote of ₹48,834 as quoted by India Bullion and Jewellers Association (IBJA) for gold (999 purity). The spot prices have slipped below the month-ago levels of ₹48,142 seen on October 25, 2021.

Spot silver ended at ₹63,781 on Tuesday, which is lower by about 2.8 per cent from ₹65,653 seen a month ago.

4. Outlook: Looking at the early trades on Wednesday, gold and silver have shown positive trend — both in domestic and international markets. MCX Gold futures is likely to be range-bound during the day between ₹46,939 and ₹48,279. MCX Silver Futures for December is expected to hover around ₹60,672-₹65,618.

Published on November 24, 2021

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