Hyderabad: The gold rates in Hyderabad have reached near all-time highs due to the expectation of an interest rate cut by the Federal Reserve early next year.
The price of 10 grams of 24-carat gold increased by over one percent from Rs 62,730 on October 31.
Gold rates in Hyderabad cross the 63K mark
Currently, the gold rates in Hyderabad are Rs 58,200 for 10 grams of 22-carat gold and Rs 63,490 for 10 grams of 24-carat gold.
The all-time high gold rates in the city are Rs 58,850 and Rs 64,200 for 10 grams of 22-carat and 24-carat, respectively.
In the international market too, gold rates have reached near an all-time high.
Reasons for the rise in rates
The recent increase in gold rates in Hyderabad and other parts of the world can be attributed to various factors. The major one is the expectation of an interest rate cut by the Federal Reserve, resulting in the decline in the dollar and US Treasury yields.
There is an expectation that the decline in interest rates will begin in March next year as the annual US inflation slowed down. Due to this expectation, the dollar index hit a near five-month low, pushing investors towards gold.
As the gold rates in Hyderabad and other Indian cities have surged, the demand for the yellow metal declined in the domestic market.
The future trends in gold rates are largely dependent on many factors, including the decision by the Federal Reserve and the geopolitical situation in the Middle East region.
