Gold prices in Hyderabad drop by 3.61% in six days; 10g of 24-carat at Rs 72,440

Hyderabad: Gold rates in Hyderabad have dipped after reaching an all-time high on May 20. The price of 24-carat gold has fallen by Rs 2,720 per 10 grams from its peak.

Currently, the rates for 10 grams of 22-carat and 24-carat gold are Rs 66,400 and Rs 72,440 respectively. This marked a 3.61 per cent decline in gold prices over six days.

Price movements and percentages

Despite the recent fall, gold prices have increased by 1.3 per cent so far this month. On May 20, the rates for 10 grams of 22-carat and 24-carat gold were Rs 68,900 and Rs 75,160, respectively. This decline followed a significant surge in gold prices driven by various geopolitical tensions.

Reasons for the decline in gold prices

The primary reason for the decline in gold rates is the hint of a possible hike in interest rates following the recent Federal Reserve meeting. The potential increase in interest rates makes financial instruments more attractive to investors compared to gold.

Goldsmiths in Hyderabad have noted the recent fluctuations.

“The decline in gold rates is influenced by global economic indicators, particularly the interest rate decisions,” said Rajesh Verma, a local goldsmith. “Investors are watching the market closely, and any further announcements from the Federal Reserve will likely impact gold prices.”

Another goldsmith, Sanjay Kumar of Ganesh Jewellers, remarked, “We’ve seen a significant drop in customer footfall since the prices peaked. People are waiting to see if the rates will stabilise or drop further before making purchases.”

“The recent price changes are not surprising given the global financial climate,” explained Varun Patel, a long-time goldsmith. “Gold is a reactive market, and any news from major economies can trigger immediate changes in local rates.”

Impact of geopolitical tensions

The earlier surge in gold rates was primarily due to geopolitical tensions, notably the Israel-Hamas conflict and the ongoing Russia-Ukraine war. These tensions created uncertainty in the market, driving investors towards gold as a safe haven.

It remains to be seen whether the gold rates in Hyderabad and globally will continue to decline or if the trend will reverse. Market analysts and local goldsmiths are closely monitoring the situation.

“The gold market is highly sensitive to geopolitical and economic developments,” said Bhagwan Rao, another goldsmith in the city. “We may see further fluctuations based on future announcements and global events.”