Gold rates drop over 5% in India after record highs in April
In April, gold rates crossed the Rs 1 lakh mark per 10 grams of 24-carat gold for the first time
By Anoushka Caroline Williams
Gold rates drop over 5% in India after record highs in April
Hyderabad: Gold prices across India have dropped by more than 5% after reaching unprecedented levels last month, with Hyderabad among the cities that recorded historic highs.
In April, gold rates crossed the Rs 1 lakh mark per 10 grams of 24-carat gold for the first time, prompting cautious consumer behavior and subdued demand. The recent decline is being viewed as a market correction following a prolonged rally driven by global uncertainties.
Current Gold Rates
In Hyderabad, the price of 22-carat gold currently stands at Rs 87,550 per 10 grams, while 24-carat gold is priced at Rs 95,510. Similar trends have been observed in other major Indian cities, including Delhi, Mumbai, and Chennai, where rates have also dropped from their April peaks.
Surge Since January
On January 1, the gold rate in Hyderabad was Rs 71,500 for 22-carat and Rs 78,000 for 24-carat gold per 10 grams. Over four months, this translates to a rise of more than 22%. The increase was fueled by a mix of global factors such as inflation concerns, geopolitical risks, and currency fluctuations.
In April alone, gold prices in Hyderabad broke all-time records on nine different occasions, reflecting the scale of the surge.
Market Observations
Jewellery traders say the price correction could help boost footfall in stores. āWe saw strong demand drop slightly when prices crossed the one-lakh mark,ā said Piyush Shah from the Secunderabad Gold Merchantsā Association, speaking to NewsMeter. āNow, with this decline, we expect some recovery in customer footfall, especially with wedding season approaching.ā
Global Factors at Play
According to bullion analysts, the earlier spike in prices was primarily driven by safe-haven buying due to ongoing geopolitical tensions, concerns over interest rates, and fluctuations in the US dollar.
āVolatility in gold prices is expected to continue in the short term,ā said Milan Jain, a bullion analyst based in Hyderabad. āWhile the fundamentals for gold remain strong, profit booking and a stable dollar have led to this recent drop.ā
National Outlook
Despite the correction, gold prices remain significantly higher than earlier in the year. Across India, retail buyers are adopting a wait-and-watch approach, while jewellers anticipate renewed demand if prices stabilize. Analysts continue to advise caution amid ongoing international developments that could influence further price movements.