Gold Prices In Souk Market; 24K/100 Grams Jumps By Rs 4,000 In 1-Day, Costliest Gold At Rs 6,44,659; Outlook

Gold prices in the souk market of Dubai skyrocketed as investors tracked a surge in international bullion. On June 20, spot gold jumped to a 1-week high as sluggish economic data made investors hopeful for early rate cuts by the US Federal Reserve. Traders will keenly await the weekly jobless claims data later in the day, which is likely to drive sentiments in gold. However, the analyst believes escalation in geo-political tensions is likely to aid gold further.

In the souk market of the emirate city of UAE, 24K gold in 100 grams was the costlier at Rs 6,44,659 among others. 24k/100 grams jumped nearly Rs 4,000 in a single day. Meanwhile, 22K and 18K gold prices also increased sharply. Gold is expected to get costlier ahead.

Kaynat Chainwala, AVP-Commodity Research, Kotak Securities said, "COMEX Gold prices have been slowly and steadily rising since last week as sluggish US economic data heightened expectations that the Federal Reserve might reduce interest rates this year, as consumer spending and inflation cools. Chicago Fed Bank President Austan Goolsbee called the latest consumer price inflation reading "excellent" and expressed optimism for further inflation cooling this year. Meanwhile, central banks plan to increase their gold reserves as per a recent WGC survey."

Chainwala added, "Investors are now focused on weekly jobless claims due later today and flash purchasing managers' indexes on Friday for insights into consumption and economic strength. Escalation in geo-political tensions also aids the haven demand with rising odds of an all-out war between Israel and Hezbollah in Lebanon."

Gold Prices In Dubai In Indian Rupee:

24K Gold Prices In Dubai: 100 grams jumped by Rs 3,979 to Rs 6,44,659 on June 20, compared to the previous day. While 10 grams of gold is up by Rs 398 to Rs 64,466. Further, 8 grams of gold zoomed by Rs 319 to Rs 51,573, and 1 gram is at Rs 6,447 up by Rs 40.

22K Gold Prices In Dubai: 100 Grams here jumped by Rs 3,411 to Rs 5,96,907 on June 20, compared to the previous day. While 10 grams climbed by Rs 341 to Rs 59,691. Also, 8 grams and 1 gram of yellow metal are up by Rs 273 and Rs 34 to Rs 47,753 and Rs 5,969 respectively.

Gold Prices In Dubai In Dirhams:

In the local currency, 22K gold prices in Dubai soared by 1.50 AED to 150 AED. 100 grams is at 26,250 AED, 10 grams at 2,625 AED, 8 grams at 2,100 AED, and 1 gram of gold is at 262.50 AED.

Further, in the case of 24K, prices were up by 1.75 AED to 175 AED. 100 grams surged to 28,350 AED, 10 grams at 2,835 AED, 8 grams at 2,268 AED, and 1 gram at 283.50 AED.

Meanwhile, 18K of gold prices also soared by 1.25 AED to 125 AED. Here, 100 grams is at 21,775 AED, 10 grams at 2,177.50 AED, 8 grams at 1,742 AED, and 1 gram at 217.75 AED.

So far in June, gold prices in Dubai are up by 0.5-1%. The pace of upside is slower compared to gains of 3% in May 2024.

In the international market, spot gold soared to $2,333.62 per ounce which was the highest level since June 12. US gold futures are also steady.