Gold prices in India rebounded on Saturday, May 10, despite potential easing in global trade uncertainties denting demand for global gold. Overall, from May 5-10, the price of 10 grams of gold in 24 carats surged by at least Rs 3,170 despite yesterday's big crash. In cities like Mumbai, Chennai, Kerala, Kolkata, Bangalore, and Hyderabad, the 10-gram gold price is at Rs 98,680 and inching closer to Rs 100,000.
Gold prices in India are in focus due to the geopolitical tensions between the country and Pakistan. Geopolitics creates economic uncertainties, which makes haven assets attractive to hedge returns on inflationary pressure.
Gold Prices In MCX:
"Gold prices witnessed a volatile session, oscillating between Rs 95,750 and Rs 96,750 on the MCX, largely influenced by sharp movements in the rupee. On the global front, Comex gold eased as market sentiment turned optimistic following trade-related announcements between the U.S. and Europe, along with the possibility of renewed trade talks between the U.S. and China," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
Going ahead, Trivedi said, "the overall risk environment remains fluid. While trade optimism is exerting pressure on gold, ongoing border tensions and shifting geopolitical narratives continue to lend support. In the near term, gold is likely to remain range-bound between ₹94,500 and ₹97,500, with heightened volatility expected as risk sentiment continues to fluctuate."
The 10-gram gold price is at Rs 98,680 in 24 carats, higher by Rs 330 on Saturday. While 22-carat and 18-carat gold prices climbed by Rs 300 and Rs 250 to Rs 90,450 and Rs 74,010 per 10 grams.
The price of 100 grams of gold advanced by Rs 3,300 to Rs 986,800 in 24 carats, while 22-carat and 18-carat gold prices are at Rs 904,500 and Rs 740,100 per 100 grams, which are higher by Rs 3,000 and Rs 2,500 in a single day.
On the previous day, 100 grams and 10 grams of gold prices nosedived by Rs 12,500 and Rs 1,250, respectively. In the case of 22-carat gold, prices dropped by Rs 11,500 and Rs 1,150 in 10 grams and 100 grams.
After a volatile first week in May, gold prices gained momentum from May 5th before correcting sharply on May 9th sharply. The 24-carat, 10-gram gold price was higher by Rs 220 on May 5, and up by Rs 2,730 on May 6, which was the biggest jump of the week. Gold prices also surged by Rs 540 on May 7, up by Rs 600 on May 8, before falling on May 9 by Rs 1,250, which was the biggest weekly single-day decline. On Saturday, 19 grams of gold is up by Rs 330.
Taking into consideration the following performance, the gold price zoomed by Rs 3170 from May 5-10.
Overall, in month of May, gold prices are up by 3%. YTD, gold has given double-digit returns.
22 carat gold is expensive in countries like Canada and Australia. While 24 carat gold price in 10 grams is most expensive in Australia. All gold carats are expensive in India compared to these countries.
Is The Hype In Gold Overrated?
According to World Gold Council, gold's performance so far this year has been remarkable. But the speed at which it has occurred has raised concerns about its endurance.
WGC believes that structural reasons will enable investment demand to continue to thrive:
- Uncertainty surrounding US policies and their effect on the dollar
- More sensitivity to higher inflation expectations and a higher likelihood of lower interest rates
- Lower gold accumulation levels than in previous cycles.
That, of course, would not prevent potential pullbacks driven by profit-taking or signs of advancements in trade negotiations. Adding, WGC said, equally, for gold's bull run to be sustainable for longer, consumers need to be given time to adapt to higher prices.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor 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.Disclaimer:
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