Gold Price Bangalore; 24/100 Grams Gold Falls By Rs 41,400 Thanks To Budget; BUY/SELL Yellow Metal?

Gold prices witnessed their biggest ever single-day decline in Bangalore city after the Union Budget 2024 announcement on July 23. In a single day, 24K/100 grams of gold nosedived by a whopping Rs 29,900. However, gold prices have been falling in these six days, especially after hitting their fresh all-time highs on July 17. Since July 18, 100 grams of 24K has declined steeply a whopping Rs 41,400. Should investors buy gold as it falls?

Gold Price In Bangalore On July 23, Budget Day: {image-gold6001-1721750998.jpg goodreturns.in

24K Gold Prices: 100 grams of this carat has slumped by Rs 29,900 in a single day to Rs 7,08,600. Further, 10 grams of gold dipped by Rs 2,990 to Rs 70,860, 8 grams slipped by Rs 2,392 to Rs 56,688, and 1 gram of gold is down by Rs 299 to Rs 7,086.

22K Gold Prices: 100 grams of gold in 22K dropped by Rs 27,500 to Rs 6,49,500, while 10 grams is down by Rs 2,750 to Rs 64,950. Also, 8 grams of yellow metal has tumbled by Rs 2,200 to Rs 51,960, and that of 1 gram price is down by Rs 275 to Rs 6,495.

18K Gold Prices: In the lowest carat of gold, 100 grams price is at Rs 5,31,400, which plunged by Rs 22,500 on Budget day. The cheapest gold is 1 gram in 18K to Rs 5,314 down by Rs 225. 10 grams of gold here is down by Rs 2,250 to Rs 53,140, and that of 8 grams price is at Rs 42,512 lower by Rs 1,800.

Gold Prices In 10 Days:

The sharpest single-day fall in July and 2024 so far, was recorded on July 23 after the Budget announcement. Notably, gold prices have been down since July 18.

24/100 grams of gold fell by Rs 1,200 on July 22, after being unchanged on July 21. Earlier, this bullion was cheaper by Rs 3,800 on July 20, followed by another decline of Rs 4,900 on July 19, and also of Rs 1,600 on July 18.

The last time gold prices were shining was on July 17, with 24K, 18, and 22K gold touching new all-time highs. 24K of 100 grams and 10 grams surpassed Rs 7,50,000 and Rs 75,000 marks.

However, from July 18-23, 24K/100 grams gold has dipped by Rs 41,400. While 10 grams is down by Rs 4,140 from its all-time high.

The 10-day average gold rate for 22K and 24K of 1 gram is at Rs 6,766 and Rs 7,382. Both the carats have dipped by 2% each so far in July month.

BUY/SELL Yellow Metal?

The latest drop in gold comes after finance Minister Nirmala Sitharaman more than halved custom duty on gold and silver to 6% from earlier 15%. Duty on silver and gold dore has also been sharply trimmed to 5.35% from earlier 14.35%. The announcement was made on July 23.

In her Budget 2024 speech, Sitharaman on Tuesday said, "To enhance domestic value addition in gold and precious metal jewellery in the country, I propose to reduce customs duties on gold and silver to 6 per cent and that on platinum to 6.4 per cent."

Anuj Gupta, Market & Trading Expert at HDFC Securities said, "In the domestic market, gold and silver prices tumbled more than 4.0% after Finance Minister Nirmala Sitharaman proposed to cut customs duty on gold and silver to 6%."

MCX gold on July 23 nosedived by Rs 4,148 or 5.70% for August expiry, to end at Rs 68,570. Silver futures with September expiry dived by Rs 4,271 or 4.8% to close at Rs 84,932 on MCX.

Gupta sees support at Rs Support: 68500/67300 and resistance at Rs Resistance 69780/70550 for MCX gold with August expiry. While silver futures with a September expiry are expected to find support at Rs Support 84300/82900 and resistance at Rs 87355/ 88400.

What should investors do? As per Gupta, "We believe that the volatility in the domestic bullion price is likely to persist following the recent budget announcement. Traders should avoid fresh buying until the price is fully discounted; duty cuts related impact."

Disclaimer: The write-up is just for information purposes, not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.