Hyderabad: Gold rates in Hyderabad and other cities are likely to drop further in the near future as sellers dominate the market.
As per experts, there are no immediate positive triggers in sight. They predict that the current correction in gold prices is not over, and the next lower target zone is becoming increasingly likely.
Current gold rates in Hyderabad
Since November 7, gold prices in Hyderabad have decreased by Rs 4,200 for 22-carat gold and Rs 4,590 for 24-carat gold.
Below are the rates in various other Indian cities.
| Indian cities | 22-carat gold rates of 10 grams (in Rs) | 24-carat gold rates of 10 grams (in Rs) |
| New Delhi | 69600 | 75910 |
| Kolkata | 69450 | 75760 |
| Mumbai | 69450 | 75760 |
| Hyderabad | 69450 | 75760 |
| Chennai | 69450 | 75760 |
Factors affecting prices of yellow metal
While the US Federal Reserve has continued with rate cuts as inflation approaches its 2 percent target, the latest consumer price index (CPI) data raised concerns.
Gold outperforms Nifty 50 this year as rates surge in Hyderabad, other cities
The CPI showed a higher-than-expected reading of 2.6 percent, compared to the anticipated 2.4 percent.
“This development added pressure on gold prices, which reacted negatively to the stronger dollar and the potential shift in Fed policy,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities.
Sandip Raichura, CEO of PL Broking and Distribution, highlighted that a deal leading to a tariff war is virtually sealed. As a result, the US dollar has gained significantly, creating additional downward pressure on gold prices.
Pranav Mer, Vice President of EBG-Commodity and Currency Research at JM Financial Services, explained that gold prices continue to be weighed down by a stronger dollar and elevated treasury yields. The US CPI data indicates that inflation remains sticky above the Fed’s 2 percent target, further pressuring the precious metal.
With no immediate signs of market recovery, gold prices in Hyderabad and other cities are expected to see further corrections.
With inputs from IANS
