Gold prices soar: 24-carat gold reaches Rs 75,160 per 10 grams in India

Hyderabad: On Monday, gold rates in Hyderabad reached an unprecedented high, with 10 grams of 22-carat gold priced at Rs 68,900 and 10 grams of 24-carat gold at Rs 75,160.

This surge marked a significant increase from earlier in the month, with gold rates in Hyderabad jumping over 5 per cent.

Monthly price increase

At the start of May, the rates for 10 grams of 22-carat and 24-carat gold were Rs 65,550 and Rs 71,510 respectively. Monday’s prices reflect an increase of Rs 500 for 22-carat and Rs 540 for 24-carat gold per 10 grams.

Comparative rates across Indian cities

Gold rates have similarly surged across other major Indian cities. As of Monday, the rates for 10 grams of 22-carat and 24-carat gold are:

- New Delhi: Rs 69,050 (22-carat), Rs 75,310 (24-carat)

- Kolkata: Rs 68,900 (22-carat), Rs 75,160 (24-carat)

- Mumbai: Rs 68,900 (22-carat), Rs 75,160 (24-carat)

- Chennai: Rs 69,000 (22-carat), Rs 75,280 (24-carat)

Factors driving the surge

The recent spike in gold prices is attributed to several global and domestic factors. Internationally, the buzz around a potential US Federal rate cut has made gold a more attractive investment.

“Lower interest rates often lead to a weaker dollar and higher gold prices,” explained Ramesh Kumar, a local goldsmith. “Investors are turning to gold as a safe haven amid economic uncertainties,” he added.

Geopolitical tensions, particularly the Israel-Hamas conflict and the ongoing Russia-Ukraine war have further driven investors towards gold.

“Geopolitical instability always boosts demand for gold,” noted Arvind Shah, a financial analyst from Hyderabad. “Gold is perceived as a stable asset during such times,” he told NewsMeter.

Domestic demand and marriage season

Domestically, the marriage season in India has contributed to the increased demand for gold.

“In Hyderabad and across India, gold is integral to weddings,” said Meena Patel, a local investor. “The marriage season always sees a spike in gold purchases.”