Gold rates in Hyderabad today experienced a dip, reaching three-month low levels.
The current rates for 10 grams of 22-carat and 24-carat gold have fallen to Rs 54,050 and Rs 58,960 respectively.
Reasons for the decline
The decline in gold rates can be attributed to the rise in the US dollar and speculations regarding US Federal Reserve rate hike.
As the US dollar has remained a preferred asset for investors, gold rates saw significant corrections. As a result of the corrections, gold rates have reached their lowest point in the past three months.
On May 28, the gold rates in Hyderabad were Rs 54,500 and Rs 59,450 for 10 grams of 22-carat and 24-carat gold respectively.
Gold rates in Hyderabad still higher compared to December level
It is worth noting that even with the recent dip, the current gold rates are still over six percent higher when compared to the rates on December 28, 2023.
The future direction of gold rates in Hyderabad and other Indian cities remains uncertain due to various factors including the possibility of a recession in certain countries and geopolitical instability due to the Russia-Ukraine war.
It remains to be seen whether the gold rates will continue to decline or if they will start rising again in response to changing market conditions.
