Hyderabad: Gold rates in Hyderabad have surged by over 7.5 percent in October, mainly due to escalating tensions in the Middle East amid the ongoing Israel-Hamas conflict.
This sharp increase in the price of gold comes just before the Dhanteras occasion on November 10, as well as the upcoming wedding season when the demand for jewelry typically rises.
Gold rates in Hyderabad cross 62K mark
As of now, gold rates in Hyderabad stand at Rs 57,400 for 10 grams of 22-carat gold and Rs 62,620 for 10 grams of 24-carat gold.
In the international market, gold prices have also surged, exceeding $2,000 per ounce during the week, marking the third consecutive weekly gain.
Israel-Hamas war may strain household budgets in Hyderabad, other cities
Reasons for rise in rates
Several factors contribute to the recent rise in gold rates in Hyderabad and worldwide. These factors include the Israel-Hamas war, the ongoing conflict in Ukraine, global economic conditions marked by high inflation, and more.
Colin Shah, the Managing Director of Kama Jewelry, expects the demand for gold to remain strong due to the sentimental value associated with buying gold during the festive season and the tradition of gifting jewelry during weddings. Additionally, recent stock market volatility has led investors to consider gold as a safer investment.
Gold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry surged Rs 308 per gm and ended at Rs 61,260 levels on Friday.
The future trends in gold rates are closely tied to efforts aimed at de-escalating the Israel-Hamas conflict.