Hyderabad: Gold rates in Hyderabad surged to new all-time on Monday amid uncertainty over US President Donald Trump’s tariff policies.
Due to fears of a trade war, demand for the yellow metal as a safe-haven investment increased.
Gold rates in Hyderabad surged by 3 pc in Feb
As of today, the price of 10 grams of 22-carat gold in Hyderabad stands at Rs 79,800 whereas, 24-carat gold has soared to Rs 87,060.
This marks an over 3 percent increase compared to the beginning of the month when 22-carat gold was priced at Rs 77,450 and 24-carat gold at Rs 84,490.
Hyderabad’s spike in gold prices is part of a nationwide trend as other major cities like Mumbai, Delhi, and Bengaluru also witnessing substantial increases.
The rising demand for gold as a safe-haven investment has further fueled the surge in prices.
On the Multi Commodity Exchange (MCX), gold futures for April 4 expiry touched an all-time high of Rs 85,384 per 10 grams in early trade.
The same contract was trading 0.51 per cent higher at Rs 85,325 per 10 grams.
In the international market, gold prices also remained near record levels due to growing fears of a global trade war. Last week, spot gold reached a new peak of USD 2,886.62 per ounce.
Reasons for surge
The uncertainty surrounding Trump’s latest trade decisions has pushed investors towards gold, which is traditionally considered a safe investment during times of economic and geopolitical instability.
Trump plans to impose a 25 per cent tariff on all steel and aluminum imports into the US.
He was expected to make a formal announcement later on Monday (US time). Trump may introduce additional tariffs on several countries.
The trade policies have raised concerns about inflation in the US, which could prevent the Federal Reserve from cutting interest rates in the near future.
Meanwhile, the gold reserves in India went up by USD 1.242 billion to USD 70.893 billion in the previous week, according to the Reserve Bank of India (RBI) data.
The apex bank said that the Special Drawing Rights (SDRs) were also up by USD 29 million to USD 17.889 billion.
Meanwhile, the rupee opened at a record low with falling by 49 paise to 87.92 against the US dollar on Monday, compared to its closing value of 87.43 on Friday.
With inputs from IANS
