Hyderabad: After reaching near all-time highs, gold rates in Hyderabad started declining as investors turned back to riskier assets.
In October, the rates of the yellow metal surged due to the Israel-Hamas war that was triggered by the October 7 attacks.
Gold rates in Hyderabad jumped by over 6 percent in October
In the month of October, gold rates in Hyderabad jumped by over 6 percent as many investors shifted to the yellow metal as it is considered a safe-haven asset during uncertainties such as wars, pandemics, and more.
On October 29, the rates of the yellow metal reached Rs 57,410 and Rs 62,630 per 10 grams of 22-carat and 24-carat, respectively.
|Date||10 grams of 22-carat (in Rs)||10 grams of 24-carat (in Rs)|
Israel-Hamas war may strain household budgets in Hyderabad, other cities
Why did rates decline now?
Today, gold rates in Hyderabad have declined to Rs 56,250 and Rs 61,360 per 10 grams of 22-carat and 24-carat, respectively.
One of the reasons behind this is investors’ decision to turn back to riskier assets, as there have been no major surprise developments from the Israel-Hamas war.
The drop in yellow metal rates in Hyderabad and other parts of the world can also be attributed to rising bond yields.
The future trends in yellow metal rates are still largely dependent on efforts to de-escalate the Israel-Hamas conflict.