Gold rates jumped in Hyderabad and other metro cities on Tuesday, ahead of the US Federal Reserve’s latest policy meeting this week.
The price of 24-carat gold increased by Rs 540 per 10 grams, while 22-carat gold increased by Rs 500. The rates are approaching an all-time high that was in August 2020. The current 24-carat and 22-carat per 10 grams are Rs 55580 and Rs 50950 respectively.
Gold prices in Hyderabad continue to rise
The price of gold in Hyderabad is continuing to rise. The 24-carat rose by 3.8 percent in December, while the 22-carat rose by 3.79 percent.
Yellow metal rates increased by 0.34, 0.22, and 4.31 percent in September, October, and November, respectively. When it comes to silver rates in Hyderabad, the trends are similar. The metal is currently priced at Rs. 75500 per kilogram.
Silver prices in Hyderabad increased by 6.45 percent in December. The metal rose 4.62 percent in November as well.
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Factors influencing gold and silver prices
Gold and silver prices, like any other market product, are 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.
Aside from demand and supply, other factors influence the rise and fall of gold prices. They include the global market, taxes, and the value of the dollar.
Among other things, the dollar rate has a significant impact on gold prices throughout the world, including Hyderabad.
Since India is a net importer of gold, any increase in the dollar rate will make the yellow metal more expensive to import, resulting in a rise in the local market rate.
Given that the US Federal Reserve’s latest policy meeting is this week, and it is expected that the policy rate will be raised again, investors have begun to park their cash in yellow metal, which is regarded as one of the safest investment options.
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