Gold Prices In Souk Market: 22K/100 Grams Jump By 2,273 On July 13, 10 Grams Gold Nears Rs 61,500; Here's Why!

Gold prices in the souk market jumped on July 14 with highest surge in 22K/100 grams by Rs 2,273. 10 grams of 22K is now near Rs 61,500, still cheap from gold sold in India. Prices of 24K and 18K gold also surged with 100 grams in these two carats expensive by over Rs 1,100 each. Gold prices are up tracking international prices as early rate cut hopes have kept investors bullish on bullion.

Spot gold crossed over $2,400 per ounce, while US gold futures is near 2,420 per ounce level. In India, on MCX, gold futures with August 5 expiry is at Rs 73,285, and almost reached near Rs 73,300 in the current week.

Generally, gold prices are cheaper in the emirate city of UAE, than compared to most locations in India. This is because there are no goods and services tax (GST) levied on gold sold in Dubai, while manufacturing cost is lower in most of Dubai's jewellery stores.

Currently, 24K/10 grams of gold is cheaper by over 11.2% from India. While 22K/10 grams of gold is at a discount of over 9%.

The probability of a rate cut by the US Federal Reserve in September, rose to 94% which will be another key boosting factor for gold as lower interest rates make non-yielding assets attractive. This optimism comes after US producer prices witnessed a mild upside in June, which signaled that inflation has taken a downward turn.

Gold Prices In Dubai In Indian Rupees:

22K gold prices in 100 grams surged by Rs 2,273 to Rs 6,14,987 on July 13, while 10 grams price jumped by Rs 228 to Rs 61,499. While 8 grams price surged by Rs 182 to Rs 49,199, and 1 gram is up by Rs 23 to Rs 6,150.

Meanwhile, 24K gold prices in 100 grams were higher by Rs 1,705 to Rs 6,63,868. Further, on July 13, 10 grams of gold climbed by Rs 171 to Rs 66,387, while 8 grams is up by Rs 136 to Rs 53,109, and 1 gram is at Rs 6,639 up by Rs 17.

Additionally, in 18K, 100 grams price soared by Rs 1,137 to Rs 5,09,837, while 10 grams price was higher by Rs 114 to Rs 50,984. Also, 8 grams price zoomed by Rs 91 to Rs 40,787, and lastly 1 gram is up by Rs 11 to Rs 5,098.

Gold Prices In Dubai On July 13 In Dirhams:

22K gold prices in Dubai surged by 1 dirham to 100 dirhams. 100 gram is at AED27,050, 10 grams is at AED27,050, 8 grams is at AED2,164, and 1 gram is at AED270.

Also, 24K gold prices climbed by 0.75 dirhams to 75 dirhams. 100 gram is at AED29,200, while 10 grams is at AED2,920, 8 grams is at AED2,336, and 1 gram is at AED292.

Moreover, 18K gold prices in the market edged higher by 0.50 dirhams to 50 dirhams. 100 grams is available at AED22,425, while 10 grams is at AED2,242.50, 8 grams at AED1,794, and finally 1 gram is at AED224.

However, in July so far, gold prices of 22K and 24K surged in Dubai at a faster pace than gold prices in India. For instance, from July 1-13, 22K and 24K gold is up by 3.5-4%, while the same carats are higher by over 2% each in India.

All the jewellery merchandise in Dubai is regulated by the government and hence authenticity of a gold ornament will be ensured. All jewellery stores must carry out a gold purity hallmark on items they sell, and the shops are obliged to provide it to the end users upon their request

The gold rates today in Dubai largely depend on the bullion markets. The rise or fall of the City of Gold is based on a host of factors. The prominent factors influencing gold rates are inflation rates, interest rates, taxes, local factors, demand and supply of the metal, geopolitical factors, economic factors and so on. Gold, the precious metal, has emerged as a good investment option in the long run.