Gold rates jump in Hyderabad, near all-time high

Hyderabad: Ahead of the US Federal Reserve’s latest policy meeting due this week, the rates of gold jumped in Hyderabad and other metro cities on Tuesday.

The 24-carat gold rate surged by Rs 540 per 10 grams whereas, 22-carat gold saw a hike of Rs 500. The rates are near an all-time high that was in August 2020.

Currently, the gold rates of 24-carat and 22-carat per 10 grams are Rs 55580 and Rs 50950 respectively.

The gold rates in Hyderabad are continuing the upward trends. In December, the 24-carat surged by 3.8 percent whereas, 22-carat witnessed 3.79 percent hike.

In September, October and November too, the rates of yellow metal increased by 0.34, 0.22, and 4.31 percent respectively.

The trends are not different when it comes to silver rates in Hyderabad. Currently, the price of the metal is Rs. 75500 per kilogram.

In December, the rates of silver in Hyderabad saw a massive hike of 6.45 percent. In November too, the metal saw a jump of 4.62 percent.

Factors that impact gold, silver rates

Like any other product in the market, gold and silver rates are also dependent on demand and supply.

As the supply of gold in Hyderabad and other districts in the country is limited, any rise in demand impacts the rates.

Apart from demand and supply, other factors also contribute to the rise or fall in the gold rates. They include the global market, taxes, and dollar rate.

Among other factors, the dollar rate has a huge impact on the gold rates everywhere including Hyderabad.

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Impact of dollar rates on gold prices

As India is a net importer of gold, any rise in the dollar rate will make the yellow metal expensive to import thereby resulting in rise in the rate in the local market.

As US Federal Reserve’s latest policy meeting is going to be held this week and it is anticipated that there will be another hike in the policy rate, investors started parking their cash in yellow metal which is considered one of the safest investment options.