Hyderabad: After hitting an all-time high on April 19, gold rates in Hyderabad started declining, leaving many in a dilemma about whether to buy the yellow metal now or wait for a further drop.
Today itself, the price of the metal fell by Rs 1400 and Rs 1530 per 10 grams of 22-carat and 24-carat gold respectively.
Why did gold rates in Hyderabad decline?
The prices of 10 grams of 22-carat and 24-carat gold, which were Rs 68150 and Rs 74340 respectively on April 19, have fallen to Rs 66150 and Rs 72160 respectively.
In just five days, the prices have dropped by around 3 percent.
The reasons behind the sudden drop include no immediate escalation in Israel-Iran tensions. There is an increased expectation that the Federal Reserve (Fed) will lower interest rates in the June and July meetings.
Recently, jewelers in Hyderabad and other cities expressed their views that the soaring gold rates are dampening the demand as people are reluctant to buy the metal now. This is also reflected in the declining imports of the precious metal, according to them.
Due to these circumstances, the gold rates not only in Hyderabad but also in other parts of the country have dropped significantly in the past five days.
Following are the prices of gold rates in various cities.
| Indian cities | 22-carat gold rates of 10 grams (in Rs) | 24-carat gold rates of 10 grams (in Rs) |
| New Delhi | 66300 | 72310 |
| Kolkata | 66150 | 72160 |
| Mumbai | 66150 | 72160 |
| Hyderabad | 66150 | 72160 |
| Chennai | 67000 | 73100 |
Is it right time to buy or invest in yellow metal?
Though the prices of the yellow metal declined, those who are looking to buy gold in Hyderabad, including investors, are in a dilemma about whether to purchase it now or wait in the hope of a further fall in rates.
Though it is unlikely to fall below the Rs 70 thousand mark in the near future, there is an expectation that the rates may jump, given the fact that the Middle East tensions still exist and the Russia-Ukraine war is ongoing.
Recently, Goldman Sachs, an American multinational investment bank and financial services company, raised the forecast for the price of the yellow metal to USD 2700 per ounce by year-end. It was forecasted when the price was around USD 2389.
If the forecast of Goldman Sachs turns out to be true, the rates of 10 grams of 22-carat and 24-carat gold in Hyderabad may cross the Rs 75 thousand and Rs 82 thousand marks respectively this year.
