24K, 18K, 22K Gold Prices In Mumbai, Delhi; Cheapest Yellow Metal Is Below Rs 5,400; May 6-10 Outlook

After nearly 5% jump in April, gold prices started the first week of May on a positive note. In the national capital Delhi and the financial hub Mumbai, 22k and 24k are up by 0.5% from May 1-5th. The cheapest gold to buy is around Rs 5,400 in 1 gram of 18K, while the cheapest 24k and 22k are about Rs 7,200 and Rs 6,600. In comparison, prices of yellow metal in Delhi is higher than in Mumbai. The momentum of upside in gold has slowed with MCX gold prices recording a second consecutive weekly drop. In the near term, the outlook on gold still remains positive!

Gold Prices In Mumbai:

The cheapest gold in 24K, 22K, and 18K is 1-gram.

Currently, 24K of 10 grams is priced at Rs 71,830, while 100 grams is available at Rs 7,18,300, 8 grams is at Rs 57,464, and 1 gram is at Rs 7,813.

Further, 22K of 10 grams is at Rs 65,850, 100 grams is at Rs 6,58,500, 8-grams is at Rs 52,680, and 1-gram is at Rs 6,585.

While 18K of 10 grams is at Rs 53,880, 100 grams is at Rs 5,38,800, 8-grams at Rs 43,104, and 1-gram is at Rs 5,388.

In Mumbai, gold prices are up by 0.5% in the first five days of May 2024.

Gold Prices In Delhi:

Just slightly more expensive than Mumbai gold prices, 24K in Delhi is at Rs 71,980 in 10 grams, at Rs 7,19,800 in 100 grams, at Rs 57,584 in 8 grams and at Rs 7,198 in 1-gram.

As for 22K, the price is at Rs 66,000 in 10-grams, at Rs 6,60,000 in 100 grams, at Rs 52,800 in 8-grams, and at Rs 6,600 in 1-gram.

Meanwhile, 18K of 10-grams is available at Rs 54,000, at Rs 5,40,000 in 100 grams, at Rs 43,200 in 8-grams and at Rs 5,400 in 1-gram.

Here as well, gold prices in Delhi is up by 0.5%.

Gold Weekly Outlook For May 6-10:

Talking about the last week's performance, SMC Global Securities in its WISE Money report said, gold prices experienced a second consecutive weekly decline, as investors exercised caution ahead of the release of U.S. non-farm payrolls data, which could shed light on the Federal Reserve's policy stance. After hitting a record high of $2,431.29 in April, prices dropped by $130 due to diminishing concerns about geopolitical risks and a hawkish repricing in rates markets.

According to SMC's report, the Federal Reserve's announcement indicated a leaning towards eventual reductions in borrowing costs, but it expressed concern over recent disappointing inflation readings, potentially delaying rate cuts. Market sentiment, as reflected by CME's FedWatch Tool, suggests a 73% probability of a rate cut in November. Despite these developments, central bank buying surged in the first three months of the year, with emerging markets driving the majority of purchases.

Additionally, SMC said, over-the-counter demand saw significant growth, particularly in Asia and the Middle East. This heightened demand contrasted with profit-taking among U.S. and European investors. Although gold is traditionally viewed as an inflation hedge, its appeal waned in the face of elevated interest rates. However, softer inflation data could provide support for prices, while stronger-than-expected reports may exert downward pressure.

Looking ahead, for May 6-10, SMC's note said, on Comex, gold prices may find support near $2230 and resistance near $2360. On the MCX, gold is projected to trade within the range of 69500-71600 levels. Meanwhile, silver prices are anticipated to dip towards the $25-$26 breakout area on COMEX, with potential for a bullish reversal, and could trade between $27.80-29.20 and on MCX prices likely to trade in the range of 79300-82500 levels.

In the near term, SMC's note said, despite current challenges, gold's the outlook remains positive in the near term, underpinned by continued central bank buying and robust demand from emerging markets.