Gold Prices, Kerala: Huge Drop In Gold By Rs 20,700 In 2 Days; Check Latest 24K, 22K, 18K Prices; Buy-On-Dips?

Gold prices continue to lose shine! On May 24, yellow metal extended their fall to nosedive by massively Rs 9,800 in 24K. But that's not all, gold prices have plunged by a huge Rs 20,700 in 2 days. Silver prices have tumbled steeply too. As per Navneet Damani, Senior VP - Commodity Research at Motilal Oswal Financial Services, gold and silver prices retreat from record highs, on the back of some profit booking and ambiguity regarding Fed interest rate cut and geo-political tensions.

As per Damani, both Gold and Silver prices posted significant gains in the past few trading sessions, hence some profit booking at higher levels is warranted. Also, in FOMC meeting minutes, Federal Reserve officials indicated that it would take longer than previously anticipated to gain greater confidence in inflation moving to 2%.

On May 24, gold prices in the city of Kerala stood at Rs 7,24,400 in 24K of 100 grams, dropping by Rs 9,800 from the previous day's Rs 7,34,200. Meanwhile, 10 grams of 24K dipped by Rs 980 to Rs 72,440, 8 grams shed by Rs 784 to Rs 57,952, and 1 gram of gold slid by Rs 98 to Rs 7,244 from the previous day.

Also, in 22K, 100 grams of gold dived by Rs 9,000 to Rs 6,64,000, while 10 grams slipped by Rs 900 to Rs 66,400 from the previous day. In the case of 18K, prices here declined by Rs 7,400 in 100 grams to Rs 5,43,300, and that of 10 grams was down by Rs 740 to Rs 54,330 on May 24.

On the previous day, 22K gold price slipped by Rs 10,000, 24K fell by Rs 10,900, and 18k gold contracted by Rs 8,100 in 100 grams.

Accordingly, 24K of 100 grams is down by Rs 20,700 in 2 days, while 22K has plummeted by Rs 19,000 and that of 18k prices of 100 grams dipped by Rs 15,500.

Further, Motilal's expert cited that many officials commented on uncertainty about the degree of policy, several officials believe that long-run rates need to be higher but also worry about the overall financial conditions.

"There was no change in rate cut probability for September, post meeting minutes, and is hovering around 50%. The steady dollar also weighed on metal prices, while safe-haven demand for gold cooled amid little signs of worsening geopolitical conditions in the Middle East after the Iranian President was killed in a helicopter crash. On the data front, a few housing-related data points were reported lower than expectations, focus today will be on US weekly jobless claims, new home sales and manufacturing and services PMI data from major economies," he added.

Gold prices in Kerala have surged by 1.30% in 22K and 24K, so far the slowest surge in three months. The two carats were up by 5% each in April, and 8% up in March 2024.

Also, Rahul Kalantri, VP of Commodities, Mehta Equities said that gold and silver prices experienced a dramatic selloff over the past two trading days, with gold plummeting by more than $100 per ounce and silver plunging around $2.50 per ounce. This drop was triggered by the release of the Federal Open Market Committee (FOMC) meeting minutes, which fuelled concerns about a more hawkish Federal Reserve. The dollar index rebounded after the FOMC meeting minutes, and U.S. 10-year bond yields also gained, pushing gold and silver prices lower.

Kalantri further added, "U.S. jobless claims declined last week to 215,000 from the previous 232,000, further pressuring gold and silver prices. However, robust demand from global central banks and geopolitical tensions could support prices at lower levels."

Lastly, Kalantri said, Gold has support at $1,312-$1,288 and resistance at $1,345-$1,361. Silver has support at $29.90-$29.75 and resistance at $30.51-$30.70. In INR, gold has support at Rs 71,280-Rs 71,050 and resistance at Rs 71,840-Rs 72,050. Silver has support at Rs 89,550-Rs 89,100 and resistance at Rs 91,140-Rs 91,780.