Gold rates in major Middle Eastern countries like Saudi Arabia and UAE fell sharply on Friday, June 6, as the two countries celebrated one of their auspicious festivals, Eid al-Adha. On this special festival, gold has become cheaper in the major souk market. In Saudi Arabia, the 24-carat gold price dropped by Rs 4,576 for 100 grams, and in UAE, the prices were down by Rs 2,336 in regions of Dubai, Abu Dhabi and other cities.
In Saudi Riyal, 100 grams gold price dropped by 100 riyals to 41,700 riyals in 24 carats, and 10 grams of gold was down by 10 riyals to 4,170 riyals on June 6.
In 22 carat, 100 grams and 10 grams gold rates dropped by 200 and 20 riyals to 38,400 and 3,840 riyals respectively.
Meanwhile, 18-carat gold rates in 100 grams and 10 grams dropped by 160 and 16 riyals to 31,420 and 3,142 riyals respectively.
In Indian rupees, 100 grams gold price dropped by Rs 2,288 to Rs 9,53,992 in 24 carats, plunged massively by Rs 4,576 to Rs 8,78,496 in 22 carats, and down by Rs 3,600 to Rs 7,18,811 in 18 carats.
10 grams gold rates are down by Rs 229 to Rs 95,399 in 24 carats in Indian rupees on June 6. Additionally, 10 grams in 22-carat and 18-carat tumbled by Rs 457 and Rs 366 to Rs 87,850 and Rs 71,881 respectively.
The local currency of UAE is dirham. In this currency, 100 grams and 10 grams of gold prices in 24 carats dipped by 100 and 10 dirhams to 40,350 and 4,035 dirhams respectively.
Coming to 22 carat, 100 grams gold got cheaper by 75 dirhams to 37,375 dirhams and 10 grams gold is down by 7.50 dirhams to 3,737.50 dirhams.
Under 18 carat, 10 grams gold price is lower by 6 dirhams to 3,058 dirhams, and 100 grams shed 60 dirhams to be available at 30,580 dirhams.
These gold prices in Indian rupees are down by Rs 2,336 to Rs 9,42,265 in 100 grams and lower by Rs 233 to Rs 94,227 per 10 grams in 24 carats. Meanwhile, 22-carat gold prices plummeted by Rs 1,752 to Rs 8,72,792 per 100 grams and edged down by Rs 175 to Rs 87,279 per 10 grams. Lastly, 18 carat gold rates in 100 grams and 10 grams declined by Rs 1,401 and Rs 140 to Rs 7,14,113 and Rs 71,411 respectively.
Notably, gold rates are still cheaper in Saudi Arabia and UAE compared to gold prices in India.
Unlike Saudi and UAE, gold prices in India were unchanged. 10 grams gold price stood at Rs 99,600 in 24 carat, at Rs 91,300 in 22 carat, and at Rs 74,700 in 18 carat. Meanwhile, 100 grams gold price stood at Rs 9,96,000 in 24 carat, at Rs 9,13,000 in 22 carat, and at Rs 7,47,000 in 18 carat.
What Is Impacting Gold Prices On June 6?
As per Rahul Kalantri, VP of Commodities, Mehta Equities, Ongoing uncertainty in broader markets is keeping safe-haven demand for precious metals like gold and silver intact. The European Central Bank's 25 basis point rate cut contributed to a pullback in gold prices.
For Comex gold and Indian gold prices, the analyst added, "Gold has support at $3340-3315 while resistance at $3395-3420. Silver has support at $35.55-35.30 while resistance is at $36.22-36.55. In INR gold has support at Rs97,420-96,990 while resistance at Rs98,350-98,640. Silver has support at Rs103,560-102,750 while resistance at Rs1,05,850-1,06,750."
It will be keenly watched how gold prices in Saudi and UAE perform amidst heightened global tensions in the coming days.
About Eid-al-Adha:
Eid al-Adha, is the second of two great Muslim festivals, the other being Eid al-Fitr. Eid al-Adha marks the culmination of the hajj (pilgrimage) rites at Mina, Saudi Arabia, near Mecca, but is celebrated by Muslims throughout the world. As with Eid al-Fitr, it is distinguished by the performance of communal prayer (salat) at daybreak on its first day. It begins on the 10th of Dhu al-Hijjah, the last month of the Islamic calendar, and continues for an additional three days (though the Muslim use of a lunar calendar means that it may occur during any season of the year), as per Britannica.
During the festival, families that can afford to sacrifice a ritually acceptable animal (sheep, goat, camel, etc.) do so and then divide the flesh equally among themselves, the poor, and friends and neighbours. Eid al-Adha is also a time for visiting with friends and family and for exchanging gifts. This festival commemorates the ransom with a ram of the biblical patriarch Ibrāhīm's (Abraham's) son Ishmael-rather than Isaac, as in Judeo-Christian tradition, the Britannica report added.
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