Hyderabad: The gold rates in Hyderabad have dipped after hitting an all-time high on May 20. From the lifetime high, it declined by Rs 2720 per 10 grams of 24-carat gold.
In the city, the rates for 22-carat and 24-carat gold for 10 grams have reached Rs 66,400 and Rs 72,440, respectively.
Gold rates in Hyderabad declined by nearly 4 pc in six days
Since May 20, the prices of the yellow metal have declined by 3.61 percent.
Despite the fall in rates, the prices have increased by 1.3 percent so far this month.
On May 20, the rates for 10 grams of 22-carat and 24-carat gold were Rs 68,900 and Rs 75,160, respectively.
Will gold rates in Hyderabad cross Rs 80 thousand mark?
Reasons for the decline in rates
The decline in gold rates can be attributed to the hint of a hike in interest rates following the recent Federal Reserve meeting.
The possibility of a hike in interest rates makes financial instruments more attractive for investors compared to gold.
The earlier surge in gold rates was due to geopolitical tensions, especially in the Middle East over the Israel-Hamas conflict and the Russia-Ukraine war.
It remains to be seen whether the gold rates in Hyderabad and globally will continue declining or if the trend will reverse.
