Hyderabad: Gold prices reached a historic milestone on Wednesday, crossing the USD 4,000 per ounce mark in international markets, and the rates in Hyderabad crossed Rs 1.23 lakh for the first time ever.
The sharp rally in gold prices has been driven by rising demand for safe-haven assets, as investors seek protection from growing global economic uncertainty and geopolitical tensions.
Speculation about possible interest rate cuts by the US Federal Reserve has further fuelled the rally.
December gold futures
The precious metal touched a record high of USD 4,002.53 in spot trading, while December gold futures on the US Commodity Exchange rose 0.5 per cent to USD 4,025 per ounce.
In India, gold prices also soared to fresh all-time highs on the Multi Commodity Exchange (MCX).
MCX Gold December futures surged past the Rs 1,22,000 per 10-gram mark for the first time, hitting a record high of Rs 1,22,101 during early trade.
In early trade, gold futures were trading 0.69 per cent higher at Rs 1,21,949 per 10 grams, while silver futures rose 0.73 per cent to Rs 1,46,855 per kg.
The rates of gold have been on a strong upward trend in Hyderabad and other cities throughout the year, supported by robust central bank buying, steady inflows into gold ETFs, and a weaker US dollar.
Domestic spot gold prices have already jumped over 55 per cent this year — reflecting the global bullish sentiment.
Gold rates in Hyderabad
In Hyderabad, the rates of the yellow metal reached Rs 1,23,170 and Rs 1,12,900 per 10 grams of 24-carat and 22-carat respectively.
Experts say gold’s record-breaking run could continue if global uncertainties persist and the Federal Reserve moves toward rate cuts in the coming months.
“Gold prices surged past USD 4,000 per ounce as investors sought safe-haven assets amid mounting global uncertainties,” experts said.
“The US government shutdown, political turmoil in France, economic worries in Japan and Argentina, and escalation in the Russia-Ukraine war are supporting safe-haven buying of precious metals,” they added.
According to analysts, gold has support at USD 3950-3920 while resistance is at USD 4020-4045. Silver has support at USD 47.70-47.40 while resistance is at USD 48.50-48.90.
With inputs from IANS
