Gold Prices In Souk Market: Massive Jump In 18K/100 Grams By Rs 12,651, Cheapest Gold Below Rs 5,200

Gold prices in the souk market of the United Emirates surged sharply on July 31, as investors awaited a dovish comment from the US Federal Reserve in the monetary policy meeting on July 31. A more dovish tone could fuel the hopes for a rate cut in September policy, while the majority of consensus is that the Fed will keep rates unchanged on Wednesday. In Indian rupees, the most surge was seen in 18/10 grams by Rs 12,651 in a single day. While 24K/10 grams is nearing the Rs 67,000 level, and 22K of the same is a few rupees away from the Rs 62,000 mark.

The prices tracked international prices which also gained rapidly on July 31.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said, Comex gold extended gains following a 1% gain yesterday, holding well above $2,400/oz buoyed primarily by safe-haven buying in response to the recent airstrike in Beirut by Israel. Additionally, softer U.S. Treasury yields and a weaker dollar ahead of the Federal Reserve's policy decision have supported the yellow metal.

On the upcoming Fed meeting decisions on Wednesday, Chainwala said that the Fed is expected to keep its benchmark rate in the range of 5.25% to 5.5%, but markets are keenly awaiting the FOMC statement, as policymakers are likely to set the stage for a rate cut in September.

Also, he added, swaps markets are fully pricing in a September cut, with the possibility of two more reductions by the end of the year. Investors are also keenly awaiting the US ISM Manufacturing PMI and the private jobs report for insights into the health of the US economy.

Gold Prices In Souk Market:

In Indian Rupees:

100 grams of 18K gold skyrocketed by Rs 12,651, while the 10 grams price is up by Rs 1,265 to Rs 51,346, and 8 grams is at Rs 41,077 up by Rs 1,012. The cheapest gold is 18K in 1 gram which is currently up by Rs 127 to Rs 5,135.

Further, the 24K gold price in Dubai increased by Rs 6,838 to Rs 6,67,899 in 100 grams. In the case of 10 grams of the same carat, prices jumped by Rs 684 to Rs 66,790.

While in the case of 22K, the price of 100 grams of gold climbed by Rs 6,839 to Rs 6,18,890. And that of 10 grams is up by Rs 684 to Rs 61,889, nearing the Rs 62,000 mark.

In Dirhams:

In the local currency, gold prices surged by 3 dirhams to 300 dirhams in 22K and 24K respectively.

100 grams of 24K is at 29,300 AED, and that of 10 grams in the same carat is at 2,930 AED. While 22K of 100 grams of gold is at 27,150 AED and 10 grams at 2,715 AED.

In the case of 18K, prices soared by 5.55 dirhams to 555 dirhams. 100 grams is at 22,525 AED, and 10 grams is at 2,252.50 AED.

Gold prices are broadly up by 4% each in 22K and 24K in July month.

The gold rates today in Dubai largely depend on the bullion markets. The rise or fall of 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 prices in Middle east countries are lower compared to the Indian cities. The tax-free policies on gold in these countries on the yellow metal have reduced gold prices. For investors, it is better to accumulate or purchase gold in small quantities whenever the prices fall. Predicting the gold rates and their movement in a specific direction is impossible. The yellow metal has been witnessing strong growth over the last few months in middle Eastern countries.