Gold rates in Hyderabad dip after RBI’s repo rate decision

Hyderabad: Gold rates in Hyderabad, along with other Indian cities, have seen a decline following the Reserve Bank of India’s (RBI) recent decision to keep the repo rate unchanged.

The trend reflects broader market dynamics and global factors affecting the yellow metal’s value.

Current gold rates in Hyderabad

As of now, gold prices in Hyderabad have dropped by Rs. 350 for 22-carat gold and Rs. 380 for 24-carat gold since December 1. The latest rates stand at:

• 22-carat gold: Rs. 71,150 per 10 grams
• 24-carat gold: Rs. 77,620 per 10 grams

Last month, gold declined by over 3 percent.

Why are yellow metal prices falling?

The dip in gold prices can be attributed to multiple factors:

• RBI Repo Rate Decision: The RBI’s move to maintain the current repo rate has influenced the domestic market, impacting investor sentiment and gold demand.

• Strengthening of the U.S. Dollar: A stronger U.S. dollar has made gold less attractive to international buyers, particularly those holding other currencies.
• Inflation Concerns: Inflationary pressures have raised uncertainties about the U.S. Federal Reserve’s interest rate policies, further affecting gold prices.

Higher interest rates generally reduce gold’s appeal as an investment, as the metal does not yield any returns, unlike interest-bearing assets.

What lies ahead for the rates?

The future trajectory of gold rates in Hyderabad and globally will depend on several factors, including:

• Geopolitical Developments: Any significant geopolitical events could influence safe-haven demand for gold.
• U.S. Economic Data: Inflation trends, employment figures, and Federal Reserve policies will play a crucial role in shaping gold prices.

While gold remains a preferred choice for investors seeking stability, market fluctuations and economic trends will continue to dictate its value.

For residents of Hyderabad, the recent dip in gold rates presents a favorable moment for purchasing the precious metal. However, future price movements remain uncertain and depend on various factors.