Gold, Silver Prices, Maharashtra Din Outlook: 24Carat Dips Rs 1,310 In 7 Days; Will They Rise In Apr 29-May 5

Gold Prices: Despite the noises and expectations of a full-scale war between Israel and Iran, yellow metal has fallen in the week from April 21st to April 27th. 24-carat of 10 grams dropped by Rs 1,310, and its counterpart silver also faced a similar downfall. 1 kg of silver plunged by Rs 2,500 last week. On Sunday, April 28, gold prices in India remained unchanged. The week from April 29 to May 5th is packed with a host of sentiments election polling, Labour Day, Maharashtra Din, and the ongoing geopolitical tensions.

Currently, 10 grams of 22-carat is at Rs 66,850, 24-carat at Rs 72,930, and 18-carat is at Rs 54,960. Meanwhile, 1 kg of silver is at Rs 86,500. They are down from their all-time highs which was witnessed last week.

Meanwhile, in Dubai, the emirate city of UAE, also lost shine in gold prices. 24-carat plunged to 2,830 dirhams as of April 28, compared to 2,895 dirhams. Also, 22-carat slipped to 2,620 dirhams currently from earlier 2,682.50 dirhams. In Indian rupees, a 24-carat of 10 grams is at Rs 64,258.55 and a 22-carat is priced at Rs 59,490.24.

Last week, the 22-carat of 10 grams crossed over Rs 68, 000 mark, and the 24-carat was above Rs 74,240 level. In the case of silver, when Iran openly declared to go to war with Israel before sending its over 300 missiles and drones, 1 kg of silver was at a record high of over Rs 86,500.

From April 21st to date, 24-carat of 10 grams is down by Rs 1,310, and 22-carat of the same gram is lower by Rs 1,200 in 7 days. Silver has plunged at a much higher rate by Rs 2,500 in 1 kg.

Talking about the performance of the week that went by, SMC Global Securities in its WISE Money research note said, "On the MCX, gold hit a low of 70202, and silver slipped below 80000 briefly. Gold and silver can now trade in consolidation; between the range of 68500-72000 and 78000-83500 respectively.

That being said, SMC's note highlighted that gold prices experienced their first weekly decline in six weeks, signalling a shift in sentiment amid reduced fears of a significant escalation in the Middle East crisis. From its peak at $2,431.29 on April 12, prices dropped nearly $100.

Will This Volatile Trend Continue From April 29 to May 5th?

According to SMC's note, currently, prices have stabilized, remaining sensitive to expectations surrounding potential rate cuts. Recent U.S. economic data releases presented a mixed picture, complicating the outlook. While Q1 economic growth slowed more than anticipated, inflationary pressures persisted. This led to uncertainty regarding the Federal Reserve's stance on interest rates. Eyes are now on March's core Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation gauge, for further insights into the rate outlook.

The brokerage added that a notable uptick in PCE figures could reinforce expectations of only one rate cut this year. The dollar index, DXY, was on track for its largest weekly decline since early March, making gold more affordable for holders of other currencies.

SMC further said, "Despite the sluggish U.S. GDP growth in the first quarter, China's robust net gold imports via Hong Kong surged by 40% in March. Meanwhile, the Bank of Japan is expected to project inflation near its 2% target and signal readiness to raise rates from near-zero to prevent further depreciation of the yen."

Hence, given the price weekly outlook, SMC' said, "On COMEX, gold prices are nearing the $2340 hurdle. A breakthrough could propel prices to recent highs of $2400, while failure to sustain above may invite selling pressure, potentially pushing prices to $2290 support levels."

In Indian rupees, the brokerage's note added, " Silver prices are anticipated to fluctuate between $27.00 and $28.50. Looking ahead, gold prices may trade sideways to bullish, within the range of 70200-72500, while silver may fluctuate within 80000-83500."

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns. in advises users to consult with certified experts before making any investment decision.