Hyderabad: Today, gold rates in Hyderabad surpassed surpassed the previous record high by crossing Rs 63K mark.
The price of 10 grams of 24-carat gold increased from Rs 61,850 on October 31 to Rs 63,380 today.
Gold rates in Hyderabad see U-shaped growth
The gold rates in the city have seen a U-shaped growth in the current month, initially declining until the 15th and then gradually rising.
Presently, the rates for 24-carat and 22-carat 10 grams of gold have reached Rs 58,100 and Rs 63,380, respectively. In the past 29 days, it has jumped by over two percent.
Reasons for surge in rates
The surge in gold rates in Hyderabad and globally can be attributed to a depreciating US dollar and falling bond yields. There are also growing expectations that the Federal Reserve is likely to cut rates in the coming months. The possibility of low-interest rates makes financial instruments less attractive for investors compared to gold, which is considered a safe investment.
Spot gold rose 0.24 percent to cross USD 2,046 per ounce by 11.30 a.m. on Wednesday. US gold futures for December delivery rose 0.3 percent to USD 2,045.40 per ounce.
Amid the marriage season in India, the demand for gold in Hyderabad and other domestic markets remains firm, thereby resulting in a surge in rates.