Gold prices in India fell on Saturday, after rising by thousands in a month. 24-carat gold prices in 10 grams which touched a new all-time high of Rs 74,340 yesterday, is currently down by Rs 100. This is due to expectations that the war between Israel and Iran will have limited chaos in the region. Although, the Middle East remains a hot zone. 24-carat rose by more than Rs 8,000 before falling on April 20.
Gold Prices On April 20:
22-carat and 24-carat gold prices witnessed a decline of Rs 10 to Rs 1,000 from 1 gram to 100 grams in a single day.
22-carat of 10 grams is down by Rs 100 to Rs 68,050, while 24-carat is also down by the same amount to Rs 74,240 compared to the previous day when they touched an all-time high of Rs 68,150 and Rs 74,340 per 10 grams.
Meanwhile, 100 grams of 22-carat and 24-carat have slipped by Rs 1,000 to Rs 6,80,500 and Rs 7,42,400 compared to the previous day's Rs 6,81,500 and Rs 7,43,400.
Further, 1-gram and 8-gram of 22-carat fell by Rs 10 and Rs 80 to Rs 6,805 and Rs 54,440 on April 20.
Whereas 1-gram and 8-gram of 24-carat was also down by Rs 10 and Rs 80 to Rs 7,424 and Rs 59,392 respectively.
However, in the case of 18-carat gold, prices were down by Rs 8 to Rs 800. 10-gram 18-carat plunged by Rs 80 to Rs 55,680, 100-gram dipped by Rs 800 to Rs 5,56,800, 8-gram dropped by Rs 64 to Rs 44,544, and 1-gram slipped by Rs 8 to Rs 5,568.
In metro cities, gold prices were highest in Chennai. In this city, 24-carat was at Rs 75,110 per 10 grams, while 22-carat was at Rs 68,850, and 18-carat was at Rs 56,330.
In Mumbai, gold was at Rs 74,240 in 24-carat, Rs 55,680 in 18-carat, and Rs 68,050 in 22-carat. The prices were the same in Kolkata, Bangalore, Kerala, Pune, and Hyderabad.
In the national capital, Delhi, gold was at Rs 74,390 in 24-carat, at Rs 68,210 in 22-carat, and Rs 55,810 in 18-carat. Further, in cities like Vadodara and Ahmedabad, gold prices were at Rs 74,290 in 24-carat, at Rs 55,730 in 18-carat, and Rs 68,110 in 22-carat.
Gold Prices Monthly Performance:
From March 20th to April 20th, gold prices in 24-carat skyrocketed by Rs 7,910 in 10 grams, while 22-carat gold zoomed by Rs 7,250 in 10 grams.
Gold prices were at an all-time high at Rs 68,150 in 22-carat and Rs 74,340 on April 19, on the back of escalation in the Middle East as reports stated Israel has retaliated with explosions being heard in Iran. Also, the gold prices in India sentiment were driven by the Lok Sabha Election polls which have commenced from April 19 onward.
However, before slipping on April 20, 24-carat gold prices rose by a whopping Rs 8,010 per 10 grams from March 19 to April 19 at its all-time level. Similarly, 22-carat of gold surged by Rs 7,350.
The reason why gold prices are down today as the stock market picked up momentum after limited expectations of escalation in the Middle East.
Vinod Nair, Head of Research, at Geojit Financial Services said, "Despite global weakness, Indian markets staged a strong recovery driven by large-cap stocks, buoyed by the expectation of limited prospects of escalation following Israel's actions against Iran. However, fragility persists with elevated oil prices, posing inflation risks. Gold prices were rising on account of safe haven demand. FIIs continued to remain risk-averse, a trend seen since last week."
Nair added, "Global sentiment remains subdued due to a robust US economy and persistent inflation, dampening hopes of a near-term Fed rate cut. Mid & small caps saw weakness as Q4 earnings expectations remained muted."
While LKP Securities expert believes any sign of mutual understanding between Iran and Israel will lead to profit booking in gold.
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Gold prices traded within a range of 72500-72800, with geopolitical tensions between Iran and Israel causing volatility in the market. Any signs of mutual understanding between the two nations are likely to prompt profit booking in gold, following a strong rally observed in the precious metal over the past month. Prices are expected to react to news developments related to both geopolitical tensions and updates on interest rates from the Federal Reserve."
Gold are haven assets which are usually appealing in times of geopolitical risks as these non-yielding assets hedge better returns against inflationary pressure. And since Israel and Gaza entered into a war, gold prices have witnessed the sharp rise, with Iran and proxies stepping into the conflict, being another boosting factor for the bullion.
If the tensions in the Middle East ease, chances are gold prices will be less lucrative. However, this will also bring back the sooner-than-expected rate cuts which could support gold ahead if the geopolitical risks cool off.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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