Hyderabad: The gold rates in Hyderabad have once again started rising after declining for two days. This movement in rates is due to the expectation of a US Fed rate cut soon.
Currently, investors are awaiting the US inflation data, which will provide more clarity on whether the rate will be cut or not.
Fed rate cut expected in September
Markets are expecting the Fed rate cut in September. Another cut is also expected in December of this year.
Now, the focus is on the US Consumer Price Index (CPI) data, which is expected today, and the Producer Price Index (PPI) report on Friday.
If the indices show cooling inflation, the chances of a Fed rate cut will rise, thereby pushing up the gold rates not only in Hyderabad but across the world.
As India is an importer of gold, the rates in the country heavily depend on international factors, including the Fed rate.
Gold rates in Hyderabad up by over 14 pc this year so far
So far this year, the rates of the yellow metal in the city have jumped by 14.9 percent, which is more than the increase seen in Nifty 50 and Sensex, which are also in the news for rapid surges.
The rates of 10 grams of 22-carat and 24-carat yellow metal on January 1 were Rs 58,550 and Rs 63,870, respectively.
Today, the rates of gold in Hyderabad jumped by Rs 200 and Rs 220 to reach Rs 67,300 and Rs 73,420, respectively.
The further trend of the rates will primarily depend on the anticipated Fed rate cut and global stability.
