Gold Rates Crash Today: Gold Rate In Chennai Falls Rs 23,500, Gold Down In Hyderabad Too; 24K, 22K, 18K Gold

Gold rates in India crashed steeply on January 22, halting its record rally. However, in city like Chennai, the downfall was huge with 100 grams gold price in 24 carat correcting by a whopping Rs 23,500. But, gold price in Hyderabad recorded Rs 22,900 decline in 100 grams. That being said, 10 grams gold price has pulled away from Rs 1.55 lakh mark.

The reason behind the latest correction in gold rates is the easing tensions between US and European Union. After his World Economic Forum visit, US President Donald Trump declared to pull back from his new tariffs on eight countries of EU.

Trump further announced that they are nearing a resolution over the Arctic island. He also declared to not use force in taking over Greenland, which is the heart of the geopolitical tensions between US and EU.

Gold Rates In India:

Gold Rates In Chennai:

In Chennai, 24 carat gold price plunged by Rs 2,350 to Rs 1,54,910 per 10 grams, while gold nosedived by Rs 23,500 to Rs 15,49,100 per 100 grams. The price of 8 grams gold also dropped by Rs 1,880 to Rs 1,23,928 and 1 gram gold corrected by Rs 235 to Rs 15,491 per 1 gram.

In case of 22 carat, gold price in 10 grams is down by Rs 2,150 to Rs 1,42,000, plunged by Rs 21,500 in 100 grams to Rs 14,20,000, and dropped by Rs 1,720 in 8 grams to Rs 1,13,600. The cheapest gold in 22 carat is of Rs 14,200 per 1 gram, which is down by Rs 215.

The situation was similar in 18 carat gold prices. Here, 10 grams gold dropped by Rs 1,000 to Rs 1,18,500, 100 grams gold tumbled by Rs 10,000 to Rs 11,85,000, 8 grams gold price slipped by Rs 800 to Rs 94,800 and 1 gram gold edged lower by Rs 100 to Rs 11,850.

Yesterday, 10 grams gold price touched a new all-time high of Rs 1,57,600 in 24 carat and Rs 1,44,150 in 22 carat in this city.

Gold Rates In Hyderabad:

The city of Hyderabad also recorded steep decline in gold rates. On January 22, gold rates in 10 grams and 100 grams of 24 carat nosedived by Rs 2,290 and Rs 22,900 to Rs 1,54,310 and Rs 15,43,100 respectively. In the smaller grams such as 8 grams and 1 gram, gold is down by Rs 1,832 and Rs 229 to Rs 1,23,448 and Rs 15,431 respectively.

Further, 22 carat gold price recorded Rs 2,100 downside in 10 grams to Rs 1,41,450, while the drop was of Rs 21,000 to Rs 14,14,500 in 100 grams. In the case of 8 grams, the downside stood at Rs 1,680 to Rs 1,13,160 and 1 gram gold is lower by Rs 210 to Rs 14,145.

Under 18 carat, gold registered a Rs 1,720 slump to Rs 1,15,730 per 10 grams, while the decline is of Rs 17,200 to Rs 11,57,300 per 100 grams. Gold dipped by Rs 1,376 to Rs 92,584 per 8 grams and was down by Rs 172 to Rs 11,573 per 1 gram.

What Is Impacting Gold Prices In India?

According to Aamir Makda Commodity & Currency Analyst, Choice Broking, gold's record-breaking rally has hit a diplomatic speed bump. The pivot from aggressive tariff threats to a 'NATO framework' for Greenland has effectively dissolved the immediate geopolitical risk premium. As the spectre of a trade war with Europe recedes, we are seeing classic safe-haven liquidation, with investors rotating back into risk assets as the 'Arctic tension' cools.

He explained that gold price on MCX has retraced by nearly -7% from its all-time high level and on the other hand, Silver price has declined by Rs.30,000 from ATH level, down by -8.75%. Gold price are already inflated due to geo-political tensions of recent times and these profit bookings are healthy for the commodity to cool-down the euphoric momentum.

Gold Prices Prediction:

Looking ahead, Makda said, "we have earlier observed a decline in OI level, currently at 9870 lots, with price's upside momentum. This signifies a Long unwinding by traders and no new addition in long positions. Along with that, we have observed an RSI divergence on Daily chart, which is a classic "Red flag". Key support would be 20-DEMA level placed at 142,350."

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