Gold Prices Kerala: Big Drop In 24K, 22K, 18K Prices By Rs 4,900-6,500; Is The Rally Party Over In Gold?

Gold Prices are witnessing pullbacks after reaching new lifetime highs. In the south city of Kerala, 24K, 22K and 18K of yellow metal have slipped massively in the range of Rs 4,900 to Rs 6,500 in a single day. Despite the latest hiccups, physical gold has delivered a CAGR of 19.42% in 12 months. However, as per Emkay Global, gold looks resisted higher levels, and awaiting fresh key triggers.

Gold Prices In Kerala:

In 24K, prices of gold have dropped by a huge Rs 6,500 in 100 grams to Rs 7,45,100 on May 21, while 10 grams price has slipped by Rs 650 to Rs 74,510 in 10 grams, and that of 8-gram price dived by Rs 520 to Rs 59,608. Lastly, 1 gram of gold is down by Rs 65 to Rs 7,451 compared to the previous day.

Further, in the case of 22K, the prices of Yellow metal shed by as steep as Rs 6,000 to Rs 6,83,000 in 100 grams, while 10 grams is at Rs 68,300 down by Rs 600, 8 grams is at Rs 54,640 lower by Rs 480, and 1 gram is at Rs 6,830 below Rs 60 in a single day.

Meanwhile, 18K prices also plummeted but at a slower pace compared to 22K and 24K. Under the 18K, 100 grams of gold dropped by Rs 4,900 to Rs 5,58,800, while 10 grams of this yellow metal is below Rs 490 to Rs 55,880. Further, 8 grams and 1 gram of yellow metal dipped by Rs 392 and Rs 49 to Rs 44,704 and Rs 5,588 respectively.

Talking about the latest trend in gold, Rahul Kalantri, VP of Commodities, Mehta Equities said, "Gold and silver extended their gains amid geopolitical tensions and robust buying support from China. Gold prices hit an all-time high, while silver reached 11-year highs before experiencing some profit-taking from their daily peaks. The geopolitical landscape intensified following a Houthi missile attack on a Chinese oil tanker in the Red Sea and the deaths of the Iranian President and the country's Foreign Minister in a helicopter crash over the weekend. These developments further supported the prices of precious metals."

Additionally, the analyst said, hopes for a Fed rate cut contributed to the upward momentum in gold and silver prices. We anticipate that gold and silver prices will remain volatile this week ahead of the release of the Fed meeting minutes. However, gold and silver are expected to hold their support levels of $2,360 and $30.40 per troy ounce, respectively, on a weekly closing basis.

"Gold has support at $2,398-$2,382 and resistance at $2,432-$2,450. Silver has support at $31.05-$30.82 and resistance at $31.60-$31.85. In INR terms, gold has support at Rs 74,230 and Rs 74,010, with resistance at Rs 74,680 and Rs 74,890. Silver has support at Rs 94,600 and Rs 93,900, while resistance is at Rs 96,200 and Rs 96,900," the Kalantri added.

So far in May month, both 22K and 24K prices have risen by over 4.20%. Last month, gold in these carats was up by 4.64%.

As per the latest Navigator report, Emkay Wealth Management cited that gold may be able to sustain at higher levels only if the Fed cuts rates, and the US starts declining against currency majors.

Further, Emkay highlighted that physical gold has delivered a CAGR of 19.42% in a 12-month period and absolute returns of 6.78% (1-month period) during April.

In Emkay's view, gold prices moved up from the US$ 2050 base, which it was hovering around for a long time, to a new range mainly due to the tensions that emerged in the Middle East, and also on the back of the Fed stance in relation to the policy rate.

Emkay's note added, that the geo-political situation has de-escalated to the comfort of the markets, though further escalation in geopolitical tension cannot be ruled out. While gold may still continue to be resisted at the current levels close to US$2370 - US$2390, the probability of any deeper corrections looks weak due to central bank demand and retail demand.