Hyderabad: Gold rates in Hyderabad continue to rise and have touched a fresh all-time high amid growing geopolitical tensions.
As the prices of the precious metal rose on the international market, the same trend was witnessed on the Multi Commodity Exchange (MCX).
Gold rates in Hyderabad jumped by over 3 percent in 8 days
In eight days, the rates of the yellow metal surged by 3.23 percent.
On April 1, the rates of 22-carat and 24-carat 10-gram gold in the city were Rs 63,600 and Rs 69,380 respectively. Currently, the rates of 22-carat and 24-carat 10-gram gold in the city are Rs 65,800 and Rs 71,770 respectively.
Following are rates of gold in Hyderabad since April 1:
| Dates | 10 gram of 22-carat gold rate (in Rs) | 10 gram of 24-carat gold rate (in Rs) |
| April 8 | 65800 | 71770 |
| April 7 | 65500 | 71440 |
| April 6 | 65500 | 71440 |
| April 5 | 64300 | 70130 |
| April 4 | 64750 | 70620 |
| April 3 | 64250 | 70020 |
| April 2 | 63500 | 69260 |
| April 1 | 63750 | 69530 |
Gold futures, maturing on June 5, 2024, stood at Rs 70,981 per 10 grams on the MCX, after recording an increase of Rs 345 or 0.49 percent over the previous close of Rs 70,636.
In the international market, spot gold was up 0.6 percent at USD 2,343.89 per ounce after hitting a record high of USD 2,353.79 earlier in the session.
Why do yellow metal prices soar?
The rise in gold rates in Hyderabad and other cities in India can be attributed to rising geopolitical tensions in Central Asia.
The demand for gold, considered a safe-haven, increased amid escalating tensions due to the Israel-Hamas conflict and no end in sight to the Russia-Ukraine war.
Another reason is central banks buying the yellow metal in large quantities.
The reduction in interest rates signaled by the US Fed also leads to an increase in gold buying as investors see lower returns on financial assets.
The demand for gold in Hyderabad and other Indian cities is fueled by the need for the precious metal in marriages as it is gifted to brides and grooms in large quantities as jewelry.
However, jewelers are of the view that the soaring gold prices are dampening this demand. This is also reflected in the declining imports of the precious metal, according to them.
