Gold Prices: 100 Gram Of 24K Cheaper By Rs 568 In Souk Market; What Will Drive Yellow Metal Ahead?

Gold prices in the souk market witnessed a volatile trend on Tuesday with 24K and 18K prices slipping in a single-day. Although, prices were lower in 22K as well, however, recovered in the later part of the day. Going forward, gold prices will be influenced by the upcoming US inflation data.

In Indian rupee, gold prices in Dubai are down by Rs 568.32 in 100 grams to Rs 6,47,881.95 in 24K, while 10 grams in the same carat plunged by Rs 56.83 to Rs 64,788.20, and that of 8-gram slipped by Rs 45.47 to Rs 51,830.56. Lastly, 1-gram gold is at Rs 6,478.82 down by Rs 5.68 compared to the previous day.

22K prices are currently stable with 100 gram at Rs 6,00,143.28, 10 gram at Rs 60,014.33, 8 gram at Rs 48,011.46, and 1-gram at Rs 6,001.43.

Further, in local currency, in the souk market, 18K gold prices plunged by 3.25 dirhams to 325 dirhams. 100 grams is at 21,600 dirhams, 10 grams at 2,160 dirhams, 8 grams at 1,728 dirhams, and 1-gram at 216 dirhams.

Unlike 18K, prices in 24K also slipped but at a slower price. 24K gold prices dropped by 0.25 dirhams to 25 dirhams. 100 grams here is priced at 28,500 dirhams, 10 grams at 2,850 dirhams, 8-grams at 2,280 dirhams, and 1-gram at 285 dirhams.

Meanwhile, 22K gold prices remained unchanged in Dubai. 100 grams is available at 26,400 dirhams, 10 grams at 2,640 dirhams, 8-grams at 2,112 dirhams, and 1 gram at 264 dirhams.

Rahul Kalantri, VP Commodities, Mehta Equities said, Last week witnessed notable price fluctuations in both gold and silver, spurred by disappointing U.S. job data and a surge in jobless claims. The news fueled speculation of potential Federal Reserve rate cuts at the upcoming September policy meetings, consequently bolstering the prices of gold and silver. Moreover, gold experienced heightened demand attributed to robust purchases by global central banks and escalating geopolitical tensions. Notably, the Chinese central bank persisted in expanding its gold reserves, adding 1.9 metric tons in April, marking the 18th consecutive month of such acquisitions.

He added, additionally, other central banks worldwide significantly increased their gold holdings in the first quarter, further underpinning gold prices. Silver also reaped the benefits of the industrial metals' strength and optimism surrounding potential Fed rate cuts.