Gold Prices In Souk Market: Big Dip In 18K/100 Grams Yellow Metal By Rs 6251.33 On June 10; Gold Is Cheap?

Gold prices in the souk market witnessed a mixed trend despite a decline in international prices after China's central bank announced to halt of gold purchases temporarily. A big drop however was seen in 18K of 100 grams by more than Rs 6,500 on June 10, while prices were unchanged in 22K and 24K in Dubai.

22K Gold Prices In Dubai: In dirhams, prices were unchanged here. 100 grams of gold is at 25,725 dirhams, 10 grams is at 2,572.50 dirhams, 8 grams at 2,058 dirhams, and 1 gran at 257.25 dirhams in the souk market.

In Indian rupees, 10 grams of gold is priced at Rs 58,481, while 100 grams is at Rs 5,84,806, and that of 8 grams is at Rs 46,785. 1 gram of gold is at Rs 5,848, which is among the cheapest to buy as of now.

24K of gold prices in Dubai: In this carat, prices were unchanged as well. 10 grams at 2,777.50 dirhams, 100 grams at 27,775 dirhams, 8 grams at 2,222 dirhams and 1 gram at 277.75 dirhams.

In Indian rupees, the prices of 10 grams at Rs 63,141, 100 grams at Rs 6,31,409, 8 grams at Rs 50,513, and 1 gram at Rs 6,314.

18K gold prices in Dubai: Unlike 22K and 24K, prices of 18K dipped steeply. On Monday, the price of 18K of 100 grams dipped by 275 dirhams which is Rs 6,251.33 in INR compared to the previous day. 10 grams also fell by 27.50 dirhams or Rs 625.13, 8 grams slipped by 22 dirhams or Rs 500.11, and the last 1 gram of 18K fell by 2.75 dirhams or Rs 62.51.

18K is currently at 21,050 dirhams, 100 grams at 2,105 dirhams, 8 grams at 1,684 dirhams, and 1 gram at 210.50 dirhams.

Rahul Kalantri, VP of Commodities, Mehta Equities said, "On Friday, gold and silver prices experienced a sharp decline, reaching multi-week lows due to China halting its gold purchases for reserves after 18 months. In the Indian market, gold and silver prices dipped by nearly Rs 1,800 and Rs 5,000, respectively. The latest US Nonfarm Payrolls report for May revealed the labour market added more people to the workforce than expected, smashing estimates. The Dollar Index surged, closing with a gain of 0.70% at 104.93 on Friday following the robust US nonfarm payroll report."

Further, Kalantri added, the 10-year US yields tested 4.43% on Friday, the lowest level since April 1. Traders are now focusing on the upcoming US inflation data and the outcomes of the Federal Reserve policy meeting scheduled for this week. Gold has support at $2,280-$2,264 and resistance at $2,312-$2,328. Silver has support at $29.02-$28.87 and resistance at $29.40-$29.62.

Giving an outlook, the analyst said, "In INR terms, gold has support at Rs 71,050-Rs 70,820 and resistance at Rs 71,530-Rs 71,780. Silver has support at Rs 88,050-Rs 87,450 and resistance at Rs 89,470-Rs 90,150."