Hyderabad: Gold rates in Hyderabad continue to rise and have touched fresh all-time highs amid growing geopolitical tensions.
As the prices of the precious metal rose on the international market, the same trend was witnessed on the Multi Commodity Exchange (MCX).
Gold rates in Hyderabad jumped by over 5 percent in 12 days
In the past 12 days, the rates of the yellow metal surged by 5.66 percent.
On April 1, the rates of 22-carat and 24-carat 10-gram gold in the city were Rs 63,600 and Rs 69,380 respectively. Currently, the rates of 22-carat and 24-carat 10-gram gold in the city are Rs 67,350 and Rs 73,460 respectively.
Gold futures on India’s Multi Commodity Exchange (MCX) rose to Rs 72,423 per 10 grams on Friday for June 5 delivery, tracking the rally in the international market which saw the price of the precious metal soar to a new lifetime high at USD 2,395.29 per ounce.
Gold futures on MCX recorded an increase of Rs 779 per 10 grams which is 1.09 percent above the previous trading session’s closing price of Rs 71,644.
Why do yellow metal prices soar?
The gold rates in Hyderabad and other cities continue to peak as central banks of various countries are resorting to large purchases of the yellow metal since it is seen as a safe-haven asset amid escalating geopolitical tensions in the Middle East and the Russia-Ukraine war.
India is the second-largest importer of gold after China, and rising international prices have a direct bearing on domestic prices.
The demand for gold in Hyderabad and other Indian cities is fueled by the need for the precious metal in marriages as it is gifted to brides and grooms in large quantities as jewelry.
However, jewelers in Hyderabad and other cities are of the view that the soaring gold rates are dampening the demand. This is also reflected in the declining imports of the precious metal, according to them.
