Gold rates, which have already reached new highs in Hyderabad and other cities in India, may rise further as the government raises customs duty and kept import duty unchanged.
Gold traders who were expecting a reduction in import duty in the union budget were left disappointed because no change was made. The import duty continues to remain at 15 percent.
Rather, the government raised customs duties on articles of gold, silver, and platinum thereby making precious metal jewelry costly.
The current rates for 24-carat and 22-carat gold in Hyderabad are Rs 57550 and Rs 52750 per 10 grams, respectively. It is expected to rise even further in the coming days.
According to market experts, rates in India are likely to reach Rs 60000 per 10 grams.
Reasons for increase in gold prices in Hyderabad and other cities
One of the major reasons for the rise in gold prices is the threat of a recession, which many experts have predicted since Russia invaded Ukraine in February 2022.
The unexpected rise in gold prices around the world, on the other hand, can be attributed to the anticipated US Fed rate hike of 25 basis points (bps), which is less than the 50 bps hiked in December.
The slowing down in tightening pace by US Fed will make interest-bearing assets less preferable investment option. It encourages investors to favour gold.
Gold, like any other market product, is determined by supply and demand. Since the supply of gold in Hyderabad and other parts of the country is limited, any increase in demand has an impact on the rates.
Gold prices in Hyderabad and other Indian cities are rising as a result of these global factors. The surge in rates resulted in a 25 percent drop in gold jewellery consumption.
(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the text’s dependability, trustworthiness, reliability, and data. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)
