Gold prices dropped today in Hyderabad and other cities, providing much-needed relief to gold buyers. Due to the banking crisis in the US and Europe, it reached an all-time high yesterday.
During the banking crisis, investors are shifting their funds to gold, which is regarded as a safe haven.
The gold rates in Hyderabad for 24-carat and 22-carat that reached to Rs 60320 and Rs 55300 per 10 grams respectively yesterday dropped to Rs 59780 and Rs 54800 per 10 grams today.
Gold rates on MCX
On Monday, the yellow metal reached Rs 60000 for the first time on the MCX. However, it later began trading at around Rs 59,700.
Apart from the banking crisis, rising inflation and interest rate hikes are also to blame for the increase in gold prices in Hyderabad and other cities.
The banking crisis was triggered by Silicon Valley Bank, Signature Bank and now Europe’s Credit Suisse.
It is expected that the gold rate of 24-carat can reach Rs 60500 per 10 grams. In the current month itself, the gold rates increased by over 6 percent.
According to jewellers in the city, the rise in gold prices can be attributed to a number of factors, including global market fluctuations and the weakening of the US dollar.
As the wedding season approaches, many families are scrambling to secure their share of the precious metal before prices skyrocket even further
“The demand for gold has always been high during the wedding season. Customers are flocking in droves to purchase gold, out of fear that prices will continue to escalate in the coming days,” stated Neeraj, a local jeweller.
Gold has always played a huge role in weddings and the city’s jewellers are working round the clock to keep up with the demand.
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