Gold Prices to Decline Further
Gold Prices in Hyderabad: Current Trends
Gold prices in Hyderabad have seen a significant drop since November 7. According to recent data, 22-carat gold rates have decreased by Rs 4,200 per 10 grams, while 24-carat gold rates have dropped by Rs 4,590. This downward trend is consistent with other major Indian cities, reflecting a nationwide price correction.
Gold Rates Across Major Indian Cities
Here is a snapshot of the latest gold prices for 22-carat and 24-carat gold in key cities:
| City | 22-carat (10 grams) | 24-carat (10 grams) |
|---|---|---|
| New Delhi | Rs 69,600 | Rs 75,910 |
| Kolkata | Rs 69,450 | Rs 75,760 |
| Mumbai | Rs 69,450 | Rs 75,760 |
| Hyderabad | Rs 69,450 | Rs 75,760 |
| Chennai | Rs 69,450 | Rs 75,760 |
The decline in gold prices in Hyderabad aligns with broader trends observed in cities like Kolkata and Mumbai, where similar corrections have been reported.
Why Gold Prices in Hyderabad Are Dropping
The recent decline in gold prices in Hyderabad can be attributed to multiple factors impacting the global market. One major reason is the ongoing adjustments in the US Federal Reserve’s policies. Although the Fed has implemented rate cuts as inflation inches closer to the 2 percent target, new data suggests further challenges.
Impact of US CPI Data
The US consumer price index (CPI) showed a reading of 2.6 percent, surpassing the anticipated 2.4 percent. This unexpected increase has spurred concerns in the financial market, placing additional pressure on gold prices. As Jateen Trivedi, VP Research Analyst at LKP Securities, explained, the stronger US dollar and potential changes in Fed policy have adversely affected gold prices. This situation has had a direct impact on gold prices in Hyderabad and other cities.
Strong Dollar and Treasury Yields
Another crucial factor contributing to the price drop is the strength of the US dollar. Sandip Raichura, CEO of PL Broking and Distribution, pointed out that a resolution leading to a tariff war has bolstered the dollar’s value. This surge has placed significant downward pressure on global gold prices, including gold prices in Hyderabad.
Pranav Mer, Vice President of EBG-Commodity and Currency Research at JM Financial Services, further noted that the combination of a strong dollar and elevated US treasury yields has exacerbated the price decline. With inflation figures staying above the Fed’s 2 percent target, the outlook for gold remains challenging.
The Road Ahead for Gold Prices
Experts believe that the current correction in gold prices is not yet complete. Jateen Trivedi suggests that the market is unlikely to see immediate positive triggers that would reverse the trend. This outlook implies that gold prices in Hyderabad and other major cities are poised for further declines. Analysts predict that the next lower target zone for gold prices may be reached soon.
Conclusion: Expect Continued Volatility
Given the existing market conditions—marked by a strong dollar, sticky inflation, and high treasury yields—gold prices in Hyderabad are expected to remain under pressure. Investors should be prepared for continued fluctuations and consider the broader economic landscape when making investment decisions.
Disclaimer:
This article provides general information for educational purposes. Always consult financial experts before making investment decisions.