Hyderabad: Gold rates in Hyderabad have been on a declining trend for over a month now. Today, the rates for 22-carat and 24-carat gold stand at Rs 55,500 and Rs 60,550 respectively, down from Rs 55,700 and Rs 60,760 on May 1, 2023.
One of the key factors influencing the dip in gold rates in Hyderabad, as well as other cities in India, is the upcoming meeting of the US Federal Reserve scheduled for next week. This meeting holds significant importance as it has a major impact on the price of gold.
Gold rates are heavily influenced by the movement of the US dollar and bond yields. A strong dollar and higher 10-year treasury yields make zero-yield bullion less attractive to investors. These global factors affect gold rates in Hyderabad and other Indian cities due to India’s position as the second-largest importer of gold worldwide.
The outcome of the upcoming Federal Reserve meeting will play a crucial role in determining whether gold rates will decrease further or begin to climb.
In addition to the Federal Reserve meeting, there are other factors that can influence the future direction of gold rates in Hyderabad. Some of them are geopolitical tensions across the globe, global economic indicators, and changes in investor sentiment. The gold rates in metro cities in India are also dependent on local factors such as demand in a particular month or festival etc.
