Hyderabad: Gold rates in Hyderabad and other cities in India on Friday climbed to a near all-time high. The rates of 24-carat and 22-carat gold reached Rs. 60, 0000, and Rs. 55, 0000 respectively.
In the current month, the rates of the yellow metal saw nearly a seven percent jump.
In the international market, gold rates reached nearly USD 2000 per ounce. There are speculations that it may breach the all-time high of USD 2072 per ounce.
Reasons for rise in gold rates in Hyderabad
Market experts attribute the rise in gold rates in Hyderabad and other Indian cities to the softening of the US dollar rate and the slipping of the dollar index below 102 levels.
Additionally, the collapse of two regional banks in the US and the crisis in a Swiss bank have also contributed to the increase in gold rates in the international market.
The Federal Reserve’s decision on interest rates has also played a key role in the fluctuation of gold rates.
Rates depend on demand and supply
As gold is also a commodity, its rates depend on demand and supply. During times of uncertainty, the rates of the yellow metal increase drastically as investors consider it a safe haven.
However, during market boom periods, its rates return to normal as investors start exploring options that can give them higher returns when compared to gold.
Gold is not only seen as an investment option as many people purchase the yellow for weddings, festivals, and other occasions.
With the rise in gold rates in Hyderabad and other Indian cities, it is likely that the demand for yellow may decrease in the short term.
