Gold rates take huge dip in Hyderabad, fall over 4 pc in 7 days

Hyderabad: Gold rates in Hyderabad, other Indian cities, and globally continued to decline on Wednesday. The drop began after the release of the U.S. presidential election results.

Over the past seven days, prices have fallen by more than 4 percent.

Current gold rates in Hyderabad

In Hyderabad, the price of gold dropped by Rs 3,200 and Rs 3,500 for 22-carat and 24-carat gold, respectively, since November 7.

Following the decline, the rates reached Rs 70,450 and Rs 76,850 for 10 grams of 22-carat and 24-carat gold, respectively.

Below are the rates in various other Indian cities.

Why are gold prices dipping?

The recent fall in gold prices can be attributed to the strengthening dollar and concerns about inflation.

In recent days, the U.S. dollar has strengthened and remained near a four-month high, making gold less attractive to holders of other currencies.

Additionally, inflationary pressures may slow the Fed’s expected rate-cutting trajectory in 2025.

Although gold is considered a safe haven, higher interest rates reduce investors’ interest in the yellow metal, which is a non-yielding asset.

The future direction of gold rates in Hyderabad and globally will largely depend on the geopolitical situation and U.S. economic data.