Hyderabad: Gold rates in Hyderabad have reached near all-time highs due to optimism that the US Federal Reserve will trim interest rates in September.
The price of 10 grams of 24-carat gold increased by over one percent from Rs 73,150 on September 12.
Gold rates in Hyderabad cross 74K mark
Currently, gold rates in Hyderabad are Rs 68,650 for 10 grams of 22-carat gold and Rs 74,450 for 10 grams of 24-carat gold.
The all-time high gold rates in the city were Rs 68,900 and Rs 75,160 for 10 grams of 22-carat and 24-carat gold, respectively, recorded on May 20, 2024.
In the international market, gold rates have also approached an all-time highs.
The current gold prices in India have reached three-month highs.
Reasons for rise in rates
The recent increase in gold rates in Hyderabad and other parts of the world can be attributed to various factors. The primary reason is the expectation of an interest rate cut by the Federal Reserve, which has led to a decline in the dollar and US Treasury yields.
There is an expectation that the decline in interest rates will begin this month, as US inflation has slowed down.
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As gold rates in Hyderabad and other Indian cities have surged, the demand for the yellow metal may decline in the domestic market.
Future trends in gold rates will largely depend on several factors, including the Federal Reserve’s decision and the geopolitical situation in the Middle East.
