Gold Prices In Delhi, Chennai Falls Rs 1,300-2,800; Cheapest Gold To Buy Is Over Rs 5,500; May 13-17 Outlook

Gold prices in Chennai and Delhi witnessed a sharp fall as steeper as Rs 1,300 and Rs 2,800 in 24K on Monday. Gold in India has continued to see sharp corrections after its record rally on Akshaya Tritiya last week, as investors cashed in their gains. Currently, the cheapest gold to buy among the two cities is a little over Rs 5,500 and is available in Delhi which also has cheaper gold prices than Chennai. From the May 13-17 trading session, it is expected that a bullish trend may persist in gold with 10 grams of 24K to find support from Rs 71,200-73,900.

Gold Prices In Chennai, May 13, 2024:

22K gold prices in Chennai fell by Rs 25 to as sharper by Rs 2,500. 100 grams of 22K dropped by Rs 2,500 to Rs 6,72,500, while 10 grams fell by Rs 250 to Rs 67,250, 8 grams shed Rs 200 to Rs 53,800, and 1 gram gold is down by Rs 25 to Rs 6,725.

Meanwhile, 24K of 100 grams plunged by Rs 2,800 to Rs 7,33,600, 10 grams was lower by Rs 280 to Rs 73,360, and 8 grams fell by Rs 224 to Rs 58,688. Lastly, 1 gram is down by Rs 28 to Rs 7,336.

In the case of 18K, 100 grams of gold is down by Rs 2,000 to Rs 5,50,900, 10 grams tumbled by Rs 200 to Rs 55,090, 8 grams at Rs 160 to Rs 44,072, and 1 gram is lower by Rs 20 to Rs 5,509.

In this city, the cheapest gold to buy starts at Rs 5,509 for 1 gram 18K.

Gold Prices In Delhi, May 13, 2024:

In the national capital, 100 grams of gold in 24K is down by Rs 1,300 to Rs 7,33,800, while in 10 grams, the price is down by Rs 130 to Rs 73,380. 8 grams and 1 gram of gold dipped by Rs 104 and Rs 13 respectively to Rs 58,704 and Rs 7,338 on May 13 compared to the previous day.

22K of 100 grams has plummeted by Rs 1,000 to Rs 6,73,000, while 10 grams of this carat is down by Rs 100 to Rs 67,300, 8 grams is lower by Rs 80 to Rs 53,840, and 1 gram is down by Rs 6,730.

Lastly, in the case of 18K, 100 grams dived by Rs 900 to Rs 5,50,600, 10 grams meanwhile slipped by Rs 90 to Rs 55,060, 8 grams fell by Rs 72 to Rs 44,048, and 1 gram is down by Rs 5,506 compared to the previous day.

The cheapest gold to buy in this city is at Rs 5,506 in 1 gram of 18K.

Gold Prices May 13-17 Outlook:

According to SMC Global Securities, gold had its strongest week since April 5, fuelled by upbeat economic data that
heightened expectations of a Federal Reserve interest rate cut. The surge came as new filings for unemployment benefits in the U.S. surpassed expectations, signalling potential economic softness. This trend, coupled with disappointing nonfarm payrolls figures, suggests a loosening job market, prompting anticipation of Fed easing starting in September. Such monetary policy shifts reduced the opportunity cost of holding gold, bolstering its appeal.

Going ahead, for this week, in its WISE Money report, SMC said, "Attention now turns to inflation data, with reports on the U.S. producer price index and consumer price index forthcoming. These releases could sway expectations regarding the timing of rate cuts; if inflation trends lower, gold stands to benefit. San Francisco Fed President Mary Daly highlighted considerable uncertainty surrounding the U.S. inflation outlook, adding to market anticipation."

In geopolitical news, the brokerage pointed out that indirect negotiations in Cairo to cease hostilities in Gaza concluded without resolution, with Israel proceeding with operations in Rafah. In the global markets, gold ETFs saw net outflows of $2 billion in April, further extending aggregate monthly losses.

Also, as per the World Gold Council, gold's continued price strength, especially during the first half of April, spurred fresh buying although it failed to counter wider selling.

In its technical outlook, SMC's note said, "On the Comex, gold prices breached recent resistance levels, indicating a potential target of $2420, with support at $2340. Meanwhile, silver is expected to trade within the $27.10-$29.80 range. Looking to the MCX, bullish momentum may persist for gold, trading between 71200-73900, while silver could range between 83500-88000 levels."

Overall, the brokerage believes that gold's resurgence, driven by economic factors and geopolitical tensions, sets the stage for potential market shifts, with inflation data and ongoing geopolitical developments shaping investor sentiment in the latest week.