Gold Prices Falls In June In Major Cities: Most Expensive Gold At Rs 7,29,300; Outlook For July 1-5

Gold prices remained unchanged on the first day of July after closing June 2024 with a downward trend. In the previous month, as per SMC Global Securities, gold saw limited gain whereas silver saw significant declines due to the appreciating dollar and profit-taking from higher levels, with gold breaking below 71,000 on MCX and silver trading near the crucial support level of 86,000. Gold and silver can trade in a range of 69000-72000 levels and 85000-90000 levels respectively.

Some of the cities such as Chennai, Kerala and Ahmedabad were gold demand is high, prices were down in June 2024 by 0.4% each in 22K and 24K.

Gold Prices In Ahmedabad:

The most expensive gold in Ahmedabad is at Rs 7,23,200 in 24K/100 grams, while the cheapest gold is at Rs 5,425 in 18K/1 Gram.

Meanwhile, prices were at Rs 66,300 in 22K/10 grams, while at Rs 72,320 in 24K/100 grams, and Rs 54,250 in 18K/100 grams.

Prices of yellow metal in Ahmedabad were unchanged on July 1.

Gold Prices In Kerala:

In this tropical city of India, the most expensive gold is being sold at Rs 7,22,800 in 24K/100 grams, and the cheapest price is at Rs 5,421 for 18/1 Gram.

10 grams of gold in 22K is priced at Rs 66,250, in 24K and 18K prices were at Rs 72,280 and Rs 54,210 respectively. Gold prices in Kerala were unchanged on July 1.

Gold Prices In Chennai:

In Chennai, gold is most expensive compared to other cities. The highest price is at Rs 7,29,300 in 24K/100 grams, and cheapest price is at Rs 5,476 for 18K/1 gram.

Gold prices in Chennai is at Rs 54,760 for 10 grams in 18K, at Rs 72,930 in 24K, and at Rs 66,850 in 24K. Prices were unchanged here as well on July 1.

Gold Outlook For July 1-5:

According to SMC Global's WISE Money report, gold prices posted a third consecutive quarterly rise as investors anticipated U.S. inflation data for insights on the Federal Reserve's potential interest rate-cut timeline. Gold has risen this quarter, largely due to the increased likelihood of U.S. monetary easing. China's significant gold purchases for its reserves also supported prices in the second quarter. The People's Bank of China (PBOC) reported that, after 18 consecutive months of increasing its gold reserves, holdings remained unchanged in May.

However, the brokerage also added that a World Gold Council survey indicated that more central banks might boost their gold reserves within the next 12 months. Data revealed a continued, though moderate, slowdown in U.S. economic activity. The market currently perceives a 64% chance of the first Fed rate cut in September, according to the CME FedWatch tool. Despite this, Fed Governor Michelle Bowman stated on Thursday that she is not yet ready to
support a rate cut due to persistent inflation pressures. A soft PCE figure is essential to maintain hopes of Fed easing and to further support gold.

Although bullion is seen as an inflation hedge, SMC's note said, "higher interest rates raise the opportunity cost of holding this non-yielding asset. On the COMEX, gold prices are finding support near $2320 and facing resistance near $2380; a break on either side will determine the next trend for gold. Conversely, silver is trading with bearish patterns and a possible range of $26.40-$31.00."

For the week, on MCX, gold prices might continue to see selling from higher levels, with support around 70200 and resistance near 72500. Silver is likely to trade between 85000-90000, as per SMC.