Hyderabad: The jewelry shops in Hyderabad are witnessing a rush as gold rates in the city have significantly dipped over the past few days. Recently, the rates of the yellow metal hit a six-month low. The rates for 10 grams of 22-carat and 24-carat gold have fallen to Rs 52,600 and Rs 57,380, respectively.
Currently, the rates of gold in Hyderabad for 10 grams of 22-carat and 24-carat gold have reached Rs 53,150 and Rs 57,980, respectively. Although the rates of the yellow metal increased by 1.04 percent from the six-month low, the jewelry shops in Hyderabad may continue to experience a rush.
The decline in gold rates in Hyderabad is due to international factors since India imports the yellow metal. This decline can be attributed to the rise in the US dollar and Treasury yields, as interest rates are expected to remain high for an extended period. Since the US dollar has remained the preferred asset for investors, gold rates have experienced significant corrections.
Although the rates have dipped significantly, they remain positive when analyzing the year-to-date (YTD) graph.
The future direction of gold rates in Hyderabad and other Indian cities remains uncertain due to various factors, especially interest rates, which are not coming down due to higher inflation worldwide. It remains to be seen whether gold rates will continue to decline or if they will start rising again in response to changing market conditions.
