Gold Prices At 1-Month High: 22K Up By Rs 2,273, 24K Up Rs 1,700 In Dubai; Cheapest Gold Is Just Rs 6,097.54

Gold prices surged to a 1-month high owing to the weak dollar and drop in treasury yields. In the souk market of Dubai, 22K gold prices jumped as high as over Rs 2,273 on Thursday, while 24K surged by nearly Rs 1,705 in Indian rupees. In the dirhams, gold prices soared highest in 18K by AED 380.

Gold Prices In Dubai, May 16, 2024:

In Indian Rupees:

22K gold jumped by Rs 2,273.08 on Thursday to Rs 6,09,753.71 in 100-grams, while 10-grams surged by Rs 227.31 to Rs 50,576.03, and 8-gram was up by Rs 181.85 to Rs 48,780.30 from the previous day. The cheapest gold to buy was at Rs 6,097.54 in 1 gram, up by Rs 22.73 from the previous day.

Meanwhile, 24K gold surged by Rs 1,704.81 to Rs 6,58,056.66 in 100-grams, while 10-gram gold is up by Rs 170.48 to Rs 65,805.67, and that of 8-gram is up by Rs 136.38 to Rs 52,644.53 from the previous day. Lastly, the cheapest gold in 24 is of 1-gram which is currently at Rs 6,580.57, up by Rs 17.05 from the previous day.

In Dirhams:

22K gold prices in Dubai in its local currency surged by 1 dirham to 100 dirhams. 100-grams is priced at 26,825 dirhams, 10-grams at 2,682.50v dirhams, 8 grams at 2,146 dirhams and 1 gram at 268.25 dirhams.

Meanwhile, 24K gold prices jumped by 0.75 dirhams to 75 dirhams. 100 grams of gold is available at 28,950 dirhams, 10 grams at 2,895 dirhams, 8 grams at 2,316 dirhams, and 1 gram at 289.50 dirhams.

Lastly, 18K gold prices saw the most jump in the range of 3.80 dirhams to 380 dirhams. 100-grams here is available at 22,250 dirhams, 10-grams is at 2,225 dirhams, 8-grams at 1,780 dirhams, and 1-grams at 222.50 dirhams.

On the latest prices, Navneet Damani, Senior VP - of Commodity Research at Motilal Oswal Financial Services said, "Gold continues to inch higher hovering around one-month high, aided by a weaker dollar and lower Treasury yields after data showed U.S. consumer prices rose less than expected in April, boosting chances of the Fed lowering interest rates. US CPI rose 0.3% last month after advancing 0.4% in March and February, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut. The headline and Core CPI on an annual basis were also reported lower by 0.1% and 0.3%, respectively, than the previous month."

He further pointed out that the dollar fell 0.6% against major currencies, hovering below the 105 mark, the lowest in over a month. Similarly, Benchmark 10-year Treasury yields hit s more than one-month low. Along with inflation, US retail sales and the NY state manufacturing index were reported lower than expectations, further adding gains for haven assets.

With expectations rising for a rate cut in September after yesterday's data, updates regarding geo-political tensions and, an attack on Slovakia PM (a NATO country) also increased the haven appeal for Gold and silver, he said.

He concluded, "Broader trend on COMEX could be in the range of $2360- 2410 and on domestic front prices could hover in the range of Rs 72,650-73,500."