Gold Prices: Sharp Jump In 24K/22K Gold In Dubai Souk Market, 18K Prices Dip; Hopes On Early Rate Cut

Gold Prices: It's the hope of an early rate cut after a softer-than-expected US job report that has spurred momentum in gold prices of 24K and 22K in UAE's emirate city, Dubai. However, easing in geopolitical tensions keeps yellow metal prices on a volatile note this week. Hence, unlike its counterparts, 18k has slipped sharply in the city. Regarding INR, gold support levels are seen at Rs 70,520 and Rs 70,350 on May 6, 2024. Escalation in the war of the Middle East alongside a softer dollar is positive for gold ahead.

Rahul Kalantri, VP of Commodities, Mehta Equities said, "Gold and silver exhibited significant volatility, bouncing back from their lows following lackluster U.S. job data but struggled to maintain their gains amidst easing geopolitical tensions. The dollar index and U.S. bond yields also retreated from their peaks following disappointing U.S. economic indicators, providing support for precious metals."

Broadly, gold and silver prices have reacted in gains to the job data. Kalantri explained, the reaction in gold and silver was positive after the release of U.S. Employment data on Friday, indicating signs of a slowdown in the U.S. economy. April's Nonfarm Payrolls (NFP) reported 175K jobs, falling short of the expected 243K. Moreover, the Unemployment Rate rose to 3.9%, and Average Hourly Earnings dipped by 3.9% YoY in April."

Gold Prices Dubai, May 6, 2024!

In Indian Rupees...

Gold prices of 24k and 22k in 10 grams jumped by Rs 170.43, up by Rs 136.35 and Rs 17.04 in 8 grams and 1 gram respectively. The sharpest surge was in 100 grams to the tune of Rs 1,704.35.

Accordingly, 24K of 10 grams is at Rs 63,515.26 on Monday as against Rs 63,344.82 of the previous day, while 100 grams surged to Rs 6,35,152.57 compared to Rs 6,33,448.22 of the previous day. 8 grams is up to Rs 50,812.21 versus Rs 50,675.86 of the previous day, while 1 gram is at Rs 6,351.53.

Meanwhile, 22k of 10 grams is at Rs 58,799.90 as against Rs 58,629.47, 100 grams at Rs 5,87,999.02 as compared to Rs 5,86,294.68 apiece, 8 grams at Rs 47,039.92 versus Rs 46,903.57, and 1 gram is at Rs 5,879.99 as compared to Rs 5,862.95 of the previous day.

Kalantri added, "While this data increased the likelihood of a Federal Reserve (Fed) rate cut, the mitigation of geopolitical tensions constrained further upside. Technical levels indicate gold finds support at $2288-2274 with resistance at $2327-2342, while silver sees support at $26.71-26.55 and resistance at $27.10-27.28. In terms of INR, gold finds support at Rs 70,520 and Rs 70,350, with resistance at Rs 70,980 and Rs 71,120. For silver, support lies at Rs 80,540-80,080, while resistance is at Rs 81,940 and Rs 82,580."

In Dirhams...

22K and 24K gold surged by 0.75 to 75 dirhams.

22K of 10 grams is at AED2,587.50, while 100 grams is at AED25,875. 8 grams and 1 gram is around AED258.75 and AED2,070 respectively.

Further, 24K is at AED2,795, 100 grams at AED27,950, 8 grams at AED2,236, and 1 gram at AED279.50.

On the other hand, 18K across grams witnessed a drop of 2.30 to 230 dirhams. 10 grams of this carat is at AED2,117, while 100 grams is at AED21,170, 8 grams at AED1,693.60, and 1 gram is at AED211.70.

As per Kaynat Chainwala, Senior Manager-Commodity Research, Kotak Securities, COMEX Gold prices edged higher on Monday as a softer-than-expected US jobs report spurred expectations of an earlier rate cut, pushing market bets on a September rate cut to 80% and increasing speculation of a second rate cut in the November or December meeting. Gold prices witnessed a second weekly decline as easing geopolitical tensions, expectations of fewer rate cuts for the year, and a more positive outlook for global economic growth dampened haven demand.

Kotak's analyst added, "The Organisation for Economic Co-operation and Development (OECD) has revised its outlook for the global economy upward, to 3.1% this year and 3.2% in 2025, from October forecast of 2.9% and 3% respectively, citing stronger-than-expected growth in the US and China. Gold may see some recovery supported by fears of an escalation in geopolitical tension in the Middle East and a softer dollar."