Hyderabad: The gold rates in Hyderabad and other parts of the country have been witnessing a surge for the past few weeks due to growing geopolitical tensions in the Middle East and other factors.
Currently, the rates of 10 grams of 22-carat and 24-carat yellow metal in the city are Rs 67050 and Rs 73150 respectively.
Gold rates in Hyderabad may jump by over 12 percent
Recently, Goldman Sachs, an American multinational investment bank and financial services company, raised the forecast for the price of yellow metal to USD 2700 per ounce by year-end.
As today’s high is USD 2389.6, to reach USD 2700 per ounce, the price of yellow metal needs to rise by over 12.9 percent.
If the forecast of Goldman Sachs turns true, the rates of 10 grams of 22-carat and 24-carat gold in Hyderabad may cross Rs 75 thousand and Rs 82 thousand marks respectively.
Why do yellow metal prices soar?
The rise in gold rates in Hyderabad and other cities in India can be attributed to rising geopolitical tensions in Central Asia. Iran’s attack on Israel added fuel to the ongoing geopolitical tensions.
The demand for gold, considered a safe-haven, increased amid escalating tensions due to conflicts in Central Asia and no end in sight to the Russia-Ukraine war.
Another reason is central banks buying the yellow metal in large quantities.
The reduction in interest rates signaled by the US Fed also leads to an increase in gold buying as investors see lower returns on financial assets.
It remains to be seen whether the gold rates in Hyderabad and other parts of India will actually cross Rs 80 thousand mark by year-end.
