Hyderabad Gold Rates

Gold Rates in Hyderabad on Bull Run, Surge Nearly 3% in Six Days

Recent Surge in Gold Rates

Gold rates in Hyderabad have been on a notable upward trajectory. Over the past six days, the prices have surged by nearly 3%, showcasing a significant rebound after a period of decline. This jump in rates followed a dip that resulted from the customs duty cut announced during the recent budget.

Impact of Customs Duty Cut

The cut in customs duty from 15% to 6% was announced by Finance Minister Nirmala Sitharaman during the budget presentation last month. This reduction initially caused gold prices to crash, with the lowest rates recorded on July 26 at Rs 63,000 for 10 grams of 22-carat gold and Rs 68,730 for 10 grams of 24-carat gold. However, since then, prices have climbed back up by 2.85%.

Current Gold Rates

As of today, the gold rates in Hyderabad for 10 grams of 22-carat and 24-carat gold are Rs 64,800 and Rs 70,690, respectively. This marks a significant recovery and a return to higher price levels, surpassing the 70K mark once again.

Comparative Gold Rates in Various Cities

Gold prices can vary across different cities in India due to local taxes, transportation costs, and market demand. However, the current rates in Hyderabad reflect a broader trend seen in major cities across the country.

Commodity market experts attribute the current uptrend in gold prices to US Fed Chief Jerome Powell’s remarks on cooling inflation, which have dispelled expectations of a rate cut in the September 2024 meeting. This has led to a weakening of the US dollar rate and the US Treasury yield. The escalating Israel-Palestine conflict has also contributed to the surge in demand for gold and other bullion metals.

Factors Behind the Surge

Despite the reduction in customs duty intended to provide temporary relief to gold consumers, the fact that India is a net importer of gold means that global market trends heavily influence local prices. The recent surge in gold rates can be attributed to several key factors:

1. Global Market Influences: Changes in the global gold market directly impact rates in Hyderabad and other Indian cities. The anticipation of a US Federal Reserve rate cut, likely to occur next month, has played a significant role in the recent price increase. A rate cut by the US Fed often leads to higher demand for gold as a safe-haven asset.
2. Economic Factors: The global economic landscape, including inflation concerns and currency fluctuations, affects gold prices. Investors tend to flock to gold during economic uncertainties, driving up demand and prices.
3. Local Market Dynamics: The local demand and supply dynamics in Hyderabad also contribute to price fluctuations. Seasonal demand, particularly during festivals and weddings, can cause short-term price increases.

Future Outlook

The current surge in gold prices has led to speculation about whether rates will continue to rise. There is optimism that gold rates in Hyderabad and other Indian cities could reach the 75K mark in the near future. Factors such as ongoing global economic conditions, US Federal Reserve policies, and local market demand will play crucial roles in determining the future trajectory of gold prices.

Old rate today is in ₹68,000 to ₹71,000 per 10 gm range, say experts

Conclusion

Gold rates in Hyderabad have experienced a significant surge, rising nearly 3% in just six days. This increase comes after a dip caused by a customs duty cut, showcasing the volatility and responsiveness of the gold market to both local and global influences. As gold continues to be a preferred investment option during uncertain times, monitoring these price trends is crucial for investors and consumers alike. The potential for further increases remains, driven by factors such as anticipated US Federal Reserve actions and ongoing economic developments.

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