Hyderabad: Gold rates in Hyderabad on Monday surged to levels never seen before as investors turned to safe-haven assets due to global factors.
The price of 10 grams of 24-carat gold reached Rs 1,05,880 on Monday.
Reason for surge
Bullion traders said that the pick-up in demand by investors helped the rally in the precious metal.
Investors are shifting to gold due to trade tensions following the announcement by the US administration to impose an additional 25 per cent tariff on Indian imports, expectation of a US Federal Reserve rate cut, and geopolitical tensions including the Russia-Ukraine and Israel-Gaza conflicts.
Moreover, a weaker rupee which has hit a record low against the US dollar is further resulting in the surge in gold rates.
Gold rates trend in Hyderabad
As of Monday, the price of 10 grams of 22-carat gold in Hyderabad stands at Rs 97,050, whereas 24-carat gold has surged to Rs 1,05,880.
When compared to rates at the beginning of the year—when 22-carat gold was priced at Rs 71,500 and 24-carat gold at Rs 78,000—this represents a jump of over 35 percent.
Hyderabad’s spike in gold rates is part of a nationwide trend, with other major cities like Mumbai, Delhi, and Bengaluru also witnessing substantial increases.
Central banks hold more gold than US bonds
For the first time in over three decades, central banks around the world are holding more gold than US government bonds, marking a major shift in how countries manage their reserves.
Traditionally, most nations kept their “treasure chest” of reserves filled with US dollars, some euros, and American government bonds, known as Treasuries, along with a smaller share of gold. But now, gold has taken the lead.
The change has been driven largely by gold prices, which have soared above $3,500 an ounce this year, according to Reuters data.
The future direction of gold rates will mainly depend on US Fed rates, tariff policy, and geopolitical tensions across the world.
