Hyderabad: Providing a much-needed relief to the gold buyers, the yellow metal rates dipped in Hyderabad and other cities following the release of US CPI and retail sales data that eases the fear of the US slipping into recession.
Apart from a dip in the gold rates to one-month low, the data also made US Fed rate hike speculation meaningless.
Reasons for dip in rates
As dollar is strengthening and bond yields are rising, investors are reducing their exposure to yellow metal and shifting focus to more attractive investment options.
Amid ease in fear of recession, gold is no longer seen as an attractive investment option by investors who now have better alternatives with higher returns.
In Hyderabad and other Indian cities, the demand for the yellow metal has fallen down as the rates, till recently, were at all-time highs. Many gold traders have reported a drop in sales.
Though they demanded a cut in import duty on the yellow metal to increase sales, the union budget left them disheartened as no change was introduced. The import duty continues to remain at 15 percent.
Gold rates in Hyderabad, other cities
In the domestic market too, the rates of the yellow metal are witnessing a dip. The rates are at one-month low in all cities in India.
The gold rates in Hyderabad for 24-carat and 22-carat have reached to Rs 56510 and Rs 51800 per 10 grams.
| Cities | 22K (in rupees) | 24K (in rupees) |
| Hyderabad | 51800 | 56510 |
| New Delhi | 51950 | 56610 |
| Mumbai | 51800 | 56510 |
| Chennai | 52450 | 57220 |
| Kolkata | 51800 | 56510 |
Though the yellow metal rates have dipped due to global reasons, market experts earlier predicted that the rates may touch Rs 60000 per 10 grams.
