Hyderabad: Amid uncertainties including recession fear, geopolitical issues, and interest rates, gold rates are likely to rise again in Hyderabad and other cities as investors are preferring the yellow metal considering it a safe heaven.
Though the rates dropped recently providing much-needed relief to the buyers of the yellow metal, it is likely to rise again in the coming days as many investors are exploring options for safe investment.
Hike in interest rates may create volatility in gold prices
A hike in interest rates in the upcoming months is likely to create volatility in gold rates thereby giving opportunity for retail investors to enter the market for long-term benefit.
These factors coupled with geopolitical uncertainties amid the Russia-Ukraine ongoing war are likely to result in a rise in gold rates in Hyderabad and other cities in India.
As India is the importer of gold, depreciated Indian rupee against the US dollar and import duty of 15 percent is likely to make the yellow metal dearer.
Gold rates jumped by over 4 percent in Hyderabad
In the current year so far, the gold rates have jumped by over four percent in Hyderabad.
The 24-carat and 22-carat gold rates jumped from Rs 55200 and Rs 50600 respectively on January 1 to Rs 57230 and Rs 52500 on February 13.
The rates in various Indian cities are as follows:
| Cities | 22K (in rupees) | 24K (in rupees) |
| Hyderabad | 52500 | 57230 |
| New Delhi | 52650 | 57380 |
| Mumbai | 52500 | 57230 |
| Chennai | 53350 | 58200 |
| Kolkata | 52500 | 57230 |
No cut in import duty on gold
Due to continuous hikes in gold rates in Hyderabad and other Indian cities, traders were demanding cut in import duty on the yellow metal.
They were of the opinion that the cut in the duty will not only push the sales but also help the government in putting a curb on smuggling.
Despite gold traders’ huge expectations, the union budget left them disheartened as no change was introduced. The import duty continues to remain at 15 percent.
As per market experts, soon the rates in India are likely to touch Rs 60000 per 10 grams.
