Gold, Silver Prices, 24K, 18K, 22K: Cheapest Gold To Buy In These Cities; May 27-31 Outlook

Gold prices in the retail stores of India have surged by 1.3% each in May month so far. Last week, was historic for precious metals like gold, silver and copper as they touched new all-time highs, however, they could not sustain their upsides. Currently, the cheapest 22K and 24K are Rs 7,244 and Rs 6,640. In silver price, the cheapest price is Rs 91.50 per 1 gram. After crossing the Rs 1,00,000 mark, silver prices in major cities stayed between Rs 91,000 to Rs 96,000.

Gold prices:

Yellow metal has continued to shine in May with gains of 1.3%, however, the upside is at a slower pace compared to April month where it rose by over 4.6%.

22K in 10 grams is at Rs 66,400, while the cheapest gold in this gram to buy is Rs 6,640. Further, 24K of 10 grams is at Rs 72,440, with the cheapest gold to buy at Rs 7,244 in 1 gram. Similarly, 18K of 10 grams is at Rs 54,330, with the cheapest gold among its counterparts, 1 gram in this carat at Rs 5,433. These are the price levels of cities like Mumbai, Kolkata, Bangalore, Hyderabad, and Kerala.

In cities like Chennai, the cheapest gold is at Rs 6,655 in 1 gram of 22K, Rs 7,260 in 24K, and Rs 5,451 in 18K. Also, in the national capital Delhi, the cheapest gold is at Rs 6,655 in 22K of 1 gram, Rs 7,259 in 24K, and Rs 5,445 in 18 K.

Silver prices:

In May, silver prices have outperformed their counterparts with gains of over 10% so far.

In cities like Chennai, Coimbatore, Hyderabad, Kerala, Vijayawada, Bhubaneswar, Vishakhapatnam, Trichy, Tirupati, Tirupur, Trivandrum, Thrissur and Pondicherry among others was around Rs 96,000 in 1Kg. The cheapest silver was in 1 gram, 8 grams, and 10 grams. While the 10 grams of silver here was between Rs 915 to Rs 960.

In metro cities like Mumbai, Delhi and Kolkata, silver was at Rs 91,500 for 1 kg, while for 10 grams the price was at Rs 915. In Bangalore, the price stood at Rs 92,000 for 1 kg with 10 grams being at Rs 920.

These price levels are as of May 26, 2024.

Gold, Silver Outlook For May 27-31:

Last week, as per SMC Global Securities' WISE Money report, Gold hit Rs.74,442 before settling around Rs.71,600, while silver peaked at Rs.95,950. On the COMEX, gold reached $2,454.20, and silver hit $32.57. However, profit booking and concerns over high interest rates led to declines.

Explaining in detail, SMC's note said, "Gold prices are nearing a two-week low and have experienced their first weekly drop in three weeks as investors reduced expectations of Fed rate cuts following recent US economic data. On Thursday, S&P Global's May flash readings for manufacturing, services, and composite PMIs indicated that US business activity is accelerating."

Further, SMC's note added, that global business activity has generally improved this month, with notable upticks in the United States, parts of Asia, and Europe, which might allow central banks to delay cutting interest rates. Meanwhile, a study revealed that the value of Peru's illegal gold exports exceeds the total legal gold exports of several other South American countries combined.

Also, it added that the Fed's May meeting minutes showed ongoing concerns about persistent inflation, with several
officials indicating a potential inclination to raise interest rates if price growth continues. Atlanta Fed President Raphael Bostic mentioned that the U.S. central bank might need to wait longer before cutting interest rates due to continued upward pressure on prices, even with April's slightly cooler inflation reading. BOJ Governor Kazuo Ueda stated that the economy is on track for a moderate recovery, suggesting that a first-quarter GDP slump alone would not prevent the central bank from raising interest rates in the coming months.

Accordingly, the brokerage's note said, " On COMEX, gold prices face resistance near $2450 and have seen a strong fall, now hovering near the support zone of $2320. If prices break below this level, the decline could extend towards $2280. If they fail to break, a reversal towards resistance is likely. Silver may trade in the range of $28-$31. In the upcoming week, gold prices on MCX may continue to witness mixed movements, with a possible trading range of 70000-73000. Silver may trade in the range of 87500-92800."