Hyderabad: The gold rates in Hyderabad have surged to a near two-week high due to expectations of a Federal Reserve interest rate cut in September.
Today, the prices of the yellow metal jumped by over 0.9 percent.
Current gold rates in Hyderabad
After this increase, the current prices of 10 grams of 24-carat and 22-carat yellow metal reached Rs 73,090 and Rs 67,000 respectively.
Following are the current rates in the metro cities:
| Indian cities | 22-carat gold rates of 10 grams (in Rs) | 24-carat gold rates of 10 grams (in Rs) |
| New Delhi | 67150 | 73240 |
| Kolkata | 67000 | 73090 |
| Mumbai | 67000 | 73090 |
| Hyderabad | 67000 | 73090 |
| Chennai | 67600 | 73750 |
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The two-week high gold rates in Hyderabad, recorded on June 21, were Rs 73,250 and Rs 67,150 for 10 grams of 24-carat and 22-carat respectively.
Since India is a net importer of gold, the rates of the yellow metal are primarily dependent on international market conditions, including Federal rates.
Why is fed rate cut expected?
Expectations for a fed rate cut in September are growing following indications from recent US data showing a softening labor market.
The US labor market is cooling as in the last week, first-time applications for US unemployment benefits rose.
Another factor pushing up gold rates in Hyderabad and other cities is the decline in dollar rates following the release of US economic data.
It remains to be seen whether the US Federal Reserve will cut interest rates in September.
