Gold Prices In India Outlook For May 2nd; What Will Drive 24K, 22K, 18K Gold Rates On Friday?

Gold prices in India closed the month of April on a positive note with 24 carat, 22 carat and 18 carat gold gaining by 5-6%. However, the start of May month began with a sharp decline with 10 grams gold price falling by Rs 1,600 to Rs 2,200 on May 1st at retail stores. MCX gold and silver will commence their first trading session for May on Friday, after being closed for statehood days in Maharashtra and Gujarat. Yellow Metal will track international prices on May 2nd.

Gold Prices In India:

On May 1st, 24 carats, 100 grams of gold plunged by Rs 21,800 to Rs 9,57,300 on May 1st, while the prices tumbled by Rs 20,000 to Rs 8,77,500 in 22K, and down by Rs 16,400 in 18K to Rs 7,18,000.

The 24-carat gold of 10 grams dropped by Rs 2,180 to Rs 95,730, 22 carat gold dipped by Rs 2,000 to Rs 87,750, and 18 carat gold price plummeted by Rs 1,640 to Rs 71,800.

MCX Gold, Silver Prices:

The MCX market was closed on May 1st due to celebration of Maharashtra Day and Gujarat Statehood day.

On April 30th, MCX gold price stood at Rs 94,611 per 10 grams, down by 0.1% after trading hours. While MCX silver price stood at Rs 94,561 per 1kg, down by 2.4% in a single-day.

Spot Gold Price:

On Friday, spot gold traded around $3,240 per ounce on Friday, which was near a two-week low. With that, comex is heading for its second straight weekly loss.

What Will Impact 24K, 22K and 18K Gold Rates In India?

China said it is considering the possibility of initiating trade talks with the US, raising hopes of a de-escalation between the two world powers. This followed President Trump's remarks that trade deals could be made with India, Japan, and South Korea, adding there's a "very good chance" of a deal with China. Earlier in the week, Trump also signed an executive order to ease some of his tariffs on automobiles and auto parts. Meanwhile, recent data showed the US economy contracted in the first quarter, while the PCE price index remained flat in March. Investors now look ahead to Friday's nonfarm payrolls report for further clues on the Federal Reserve's policy path, as per Trading Economics.

Furthermore, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, the softness comes amid growing optimism around potential trade agreements between the US and countries like India and Japan, reducing trade war jitters and safe-haven demand.

Market participants now await critical US macroeconomic data - including ADP Nonfarm Employment Change, Nonfarm Payrolls, and the Unemployment Rate - which are expected to guide gold's next move. Adding Trivedi said, "For the short term, gold is expected to remain volatile within a range of ₹94,000-₹96,000 on MCX."

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.