Gold dips to Rs 89,300 per 10 g: Hyderabad traders cite profit booking, easing global conflicts

Hyderabad: Gold prices in Hyderabad have continued their downward slide, nearing rates last seen at the beginning of June. Traders say the dip is driven largely by profit booking and a noticeable cooling of global tensions, especially in the Middle East and in US-China trade relations.

Prices near June 1 levels

On Sunday, the price of 10 grams of 22-carat gold in Hyderabad was Rs 89,300. The 24-carat variety stood at Rs 97,420 — a noticeable decline from the month’s peak.

However, prices still reflect a significant rise compared to early January, when 22-carat gold was Rs 71,500 and 24-carat gold Rs 78,000. The year-to-date increase remains over 24 per cent.

Calm global outlook leads to selling

Local jewellers and bullion dealers report that many investors are choosing to sell after recent highs in gold, locking in profits amid a quieter international climate.

“We saw a good run-up in prices through April and May. Now that there are no fresh global worries, many of our regular customers are selling rather than buying,” said Sameer Shah, a gold trader speaking to NewsMeter.

Traders also point to reports of progress in US-China trade discussions and fewer flare-ups in the Middle East as reasons for the softened safe-haven demand.

Silver holds steady

While gold has slipped, silver continues to remain strong in the local market. Dealers attribute this to sustained demand from both individual investors and small businesses.

“Silver is holding because industrial orders haven’t really gone down. It’s also more affordable for people who want to invest in precious metals without spending Rs 1 lakh,” said A Krishna Rao, owner of Sri Ganesh Jewellers in AS Rao Nagar.

Similar trends across India

The fall in Hyderabad mirrors what’s happening in cities like Mumbai, Delhi and Bengaluru, where prices have also dipped due to lower demand and global cues.

Commodity trainer and educator Farzana Naaz, who runs investment workshops in Hyderabad, said: “Gold reacts fast to global news. Right now, traders are reacting to peace, not panic. But if anything changes, prices could swing again.”

Market awaits US fed signal

The next big movement in gold prices is expected to hinge on decisions from the US Federal Reserve regarding interest rates. A rate hike could strengthen the dollar, which typically puts pressure on gold.

For now, the gold market in Hyderabad appears to be stabilising, with silver offering some resilience. Experts advise buyers to watch global cues closely before making large purchases or sales.