Gold Prices: 24K, 22K, 18K In Dubai On May 2 After Big Drop By Rs 738-7,382, Cheapest Gold To BUY In INR?

Gold prices in Dubai stayed steady on May 2nd after the US Federal Reserve maintained no change in its key policy rates. Although the Fed expressed a dovish stance, rate cut jitters remain as the US central bank stated they were in no hurry to lower key interest rates. Hence, momentum in gold took a backseat to the continuation of higher rates longer than expected. During the day FOMC meeting outcomes were announced, gold prices in the UAE's emirate city recorded a big drop of Rs 738.24 and Rs 7,382.38 in 24k of 10-gram and 100-gram in Indian rupees.

The latest Fed policy was on the expected lines. Kaynat Chainwala, Senior Manager-Commodity Research, Kotak Securities said, COMEX Gold prices recouped early losses after the much awaited FOMC policy meeting, during which the Federal Reserve kept the target range for the fed funds unchanged at 5.25%-5.50% for the sixth consecutive time, as ongoing inflationary pressures and a tight labor market indicate a stall in progress toward bringing inflation back down to its 2% target this year."

Gold Prices In Dubai On May 2, 2024:

In Indian Rupees...

22K of 10-gram is at Rs 58,209.24 on Thursday, after falling by Rs 738.24 in the previous day. Meanwhile, 100-gram is at Rs 5,82,092.38 today, unchanged from the previous day when the price was down by a massive Rs 7,382.38. While 8-gram and 1-gram gold is at Rs 5,820.92 and Rs 46,567.39 today, after dropping by Rs 73.82 and Rs 590.59 on May 1.

In the case of 24k of yellow metal, 10-gram which fell by Rs 738.24 on May 1, is unchanged to Rs 62,922.77 on May 2, and that of 24 carat is at Rs 6,29,227.66 after falling by Rs 7,382.38 on Wednesday. 8-gram is at Rs 50,338.21 and 1-gram is at Rs 6,292.28 after the two grams recorded a decline of Rs 590.59 and Rs 73.82 on May 1.

In Dubai, the cheapest gold to buy in Indian rupee is 1-gram and 8-gram in both 22k and 24k.

Although the shine in yellow metal on May 2 witnessed no move, that is because the Fed stayed on its forecast of three rate cuts in 2024. Hence, a bullish trend in gold going ahead is likelihood!

Rahul Kalantri, VP Commodities, Mehta Equities said, the gold and silver markets are experiencing renewed bullish momentum, closing near session highs as momentum in the U.S. labour market cools, evidenced by the number of job openings falling more than expected to 8.49 million as of the last day of March. This decline in job openings, a measure of labor demand, is accompanied by a drop in the U.S ISM Index to 49.2 for April, compared to March's reading of 50.3, further bolstering precious metals. The U.S. Federal Reserve opted to maintain interest rates unchanged at 5.50%, and the Fed Chairman's commentary was less hawkish than anticipated, lending support to bullion markets.

He added, "Gold finds support levels at $2305-2288 with resistance at $2335-2351, while silver's support rests at $26.42-26.28 and resistance at $26.85-27.05. In terms of Indian Rupees (INR), gold sees support at Rs 70,420 and 70,150, with resistance at Rs 70,780 and 71,920. For silver, support is observed at Rs 80,840-80,380, with resistance at Rs 81,840 and 82,380."

In Dirhams...

Gold prices in the local currency of the emirate city remained changed at retail stores. On May 1, the same carats were down by huge 3.25%.

Currently, 22k of 10-gram, 100-gram, and 8-gram is at AED2,562.50, AED25,625 and AED2,050 respectively. The cheapest gold is 1-gram which is at AED256.25.

Further, 24k of 10-gram is at AED2,770, 100-gram at AED27,700, 8-gram at AED2,216, and 1-gram at AED277.

Also, 18k of 10-gram is at AED2,127.50, 100-gram at AED21,275, 8-gram at AED1,702, and 1-gram at AED212.75.

Lastly, Chainwala added, "Disappointing data released earlier yesterday showed US Job openings tumbled to a three year low, while the ISM Manufacturing PMI contracted to 49.2 in April, from 50.3 in March. The meeting was perceived as less hawkish, which might provide some tailwind to gold prices."