Gold Prices, Souk Market: 24K, 22K Gold Gets Expensive By Rs 3,970-4,538 On June 24 In INR; Why Prices Are Up?

In the souk market of Dubai, gold got expensive on June 4 as traders took a position in yellow metal on rate cut hopes and awaited further economic data. In INR terms, 24K and 22K prices jumped as high as Rs 3,970 and Rs 4,538 in a single day. Gold is likely to witness a volatile week, but nonetheless, the prices will be cheaper in INR in Dubai compared to yellow metal sold in India.

Gold Prices In Dubai In Indian Rupees:

22K gold prices in Dubai have surged by Rs 40 to Rs 3,970 on June 4 compared to the previous day. 100 grams of 22K is available at Rs 5,97,860, up by Rs 3,970, while 10 grams is at Rs 59,786 up by Rs 397, 8 grams is at Rs 47,820 up by Rs 318, and 1 gram is at Rs 5,979 up by Rs 40 from the previous day.

Furthermore, 24K gold is up by Rs 454 in 10 grams to Rs 64,551, 100 grams surged by Rs 4,538 to Rs 6,45,508, 8 grams is up by Rs 363 to Rs 51,641, and 1 gram rises by Rs 45 to Rs 6,455 compared to the previous day.

Gold Prices In Dubai, In Dirhams:

In the local currency, 24K gold climbed by 2 dirhams to 200 dirhams. 10 grams is available at 2,845 dirhams, while 100 grams is priced at 28,450 dirhams, 8 grams at 2,276 dirhams, and 1 gram at 284.50 dirhams.

Unlike 24K, gold prices of 22K surged by 1.75 dirhams to 175 dirhams. 10 grams is at 2,635 dirhams, 100 grams at 26,350 dirhams, 8 grams at 2,108 dirhams, and 1 gram at 263.50 dirhams.

On the other hand, 18K prices of gold plunged by 1.40 dirhams to 140 dirhams. On June 4, 1 gram is at 215.60 dirhams, 8 grams at 1,724.80 dirhams, 10 grams at 2,156 dirhams, and 100 grams at 21,560 dirhams.

Why Gold Prices Are Up?

Rahul Kalantri, VP of Commodities, Mehta Equities said, "Gold and silver prices gained in a highly volatile session following disappointing U.S. manufacturing PMI data and weakness in the dollar index. The Institute for Supply Management (ISM) released its May manufacturing data on Monday, indicating that U.S. manufacturing activities slowed for the second consecutive month, with new goods orders dropping at the fastest pace in nearly two years. Consequently, the dollar index fell to nearly two-month lows, and U.S. 10-year bond yields also plunged, supporting gold and silver prices.

Kalantri also said that last week's U.S. PCE price index data showed easing inflation, increasing the likelihood of one or two rate cuts by the U.S. Fed this year, further boosting precious metal prices.

Gold Outlook:

Going ahead, Kalantri said, "We expect gold and silver prices to remain volatile this week ahead of the U.S. job data and European Central Bank policy meetings. Gold has support at $2327-$2310 while resistance at $2361-$2374. Silver has support at $30.40-$30.17 while resistance at $30.88-$31.10."

In INR, the expert added, "Gold has support at Rs 71,740-Rs 71,520 while resistance at Rs 72,320-Rs 72,580. Silver has support at Rs 91,450-Rs 90,780 while resistance at Rs 92,790-Rs 93,550."