Hyderabad: Gold rates in Hyderabad declined today after hitting an all-time high yesterday.
Even after the decline, they are 8.38 percent higher than the rates a month ago.
Gold rates in Hyderabad jumped by over 8 pc in March
In the last month, the rates of the yellow metal surged by 8.38 percent.
Currently, the rates of 22-carat and 24-carat 10-gram gold in the city are Rs 63,500 and Rs 69,260 respectively. Yesterday, the rates of 22-carat and 24-carat 10-gram gold were Rs 63,750 and Rs 69,530 respectively.
On March 1, the rates of 22-carat and 24-carat 10-gram gold in the city were Rs 57,900 and Rs 63,160 respectively.
| Dates | 22-carat gold rate (in Rs) | 24-carat gold rate (in Rs) |
| March 1 | 57,900 | 63,160 |
| April 1 | 63,750 | 69,530 |
| April 2 | 63,500 | 69,260 |
In the international market, yesterday, the prices rose to a new lifetime high of USD 2,263.53 per ounce.
Why do yellow metal prices soar?
The rise in gold rates in Hyderabad and across various cities in India can be attributed to an increase in demand by the Chinese central bank, which is increasing its yellow metal reserves.
Apart from that, the possibility of a rate cut by the US Federal Reserve is another factor. Expectations of low-interest rates make financial instruments less attractive for investors compared to gold, leading to increased purchases of the yellow metal and the rise in prices.
Geopolitical tensions in Central Asia are also adding to the demand for the yellow metal. With no end in sight to the Russia-Ukraine war and the Israel-Hamas conflict spreading to the Red Sea region, gold is seen as an attractive safe-haven asset by investors amid geopolitical uncertainty.
In the domestic market, the demand for gold is fueled by the need for the precious metal in marriages, as it is gifted to brides and grooms in large quantities as jewelry.
As gold rates in Hyderabad and other Indian cities are near the Rs 70,000 mark, it remains to be seen whether they will breach the mark or the trend will reverse.
