Hyderabad: The gold rates in Hyderabad have dropped by over four percent following the announcement of a reduction in customs duty on the yellow metal.
Yesterday, Finance Minister Nirmala Sitharaman announced the reduction in the rate from 15 percent to 6 percent.
Demand to rise due to dip in gold rates in Hyderabad, other cities
Following the significant dip in gold rates in a single day, the demand for the yellow metal is expected to rise.
The reduction in basic customs duty on gold, silver, and platinum has been a long-pending demand of the gems and jewelry industry.
Though the demand is expected to rise in the short term, the threat of geopolitical instability still exists, which may, in the near term, push the rates of gold up again in Indian cities including Hyderabad.
Current Rates
As of July 24, the prices of 22-carat and 24-carat gold per 10 grams in the city are Rs. 64,950 and Rs. 70,860, respectively.
The rates dropped by nearly Rs. 3,000 per 10 grams following the announcement of the reduction in import duty.
Following are the gold rates in Hyderabad and other cities:
| Indian cities | 22-carat gold rates of 10 grams (in Rs) | 24-carat gold rates of 10 grams (in Rs) | Silver rates of one kg (in Rs) |
| New Delhi | 65100 | 71010 | 87500 |
| Kolkata | 64950 | 70860 | 87500 |
| Mumbai | 64950 | 70860 | 87500 |
| Hyderabad | 64950 | 70860 | 92000 |
| Chennai | 64900 | 70800 | 92000 |
The government’s decision has not only reduced the gold rates in Hyderabad and other cities in India but will also curb smuggling as the incentives for the crime have decreased.
