In Hyderabad soared to a record high on Monday, with the precious metal retailing at Rs 69,380 for 24 carat gold per 10 grams. This marks the highest price recorded in the city in the past year.
On March 31, the previous day, the price of 24 carat gold per 10 grams was Rs 68,450 in Hyderabad, indicating a significant increase within a day.
Industry experts attribute this surge in gold prices to escalating geopolitical tensions, particularly in Central Asia. The recent signal from the United States Federal Reserve indicating a potential rate cut has also contributed to the bullish trend in gold markets.
According to analysts, rising geopolitical risks globally, coupled with substantial buying by central banks, notably led by China, have further fueled the upward trajectory of gold prices.
Gold hits new lifetime high amid geopolitical tensions
MCX gold prices in India surged to a record high of Rs 69,487 per 10 grams in opening trade, following the uptrend in the international market. As of 11:26 am, it was trading around Rs 68,828.
Rising geopolitical risks and buying by central banks, led by China have also fuelled gold prices. With no end in sight to the Russia-Ukraine war and the Israel-Hamas conflict spreading to the Red Sea region, gold is seen as an attractive safe haven asset by investors amid geopolitical uncertainty.
The demand for gold in the domestic market is fuelled by the need for precious metal in marriages as it is gifted to brides and grooms in large quantities as jewellery. However, jewellers are of the view that the soaring gold prices may dampen this demand. This is also reflected in the declining imports of the precious metal, according to them.
“Gold prices have moved steadily higher over the last six months as expectations of a dovish Fed policy have been gaining ground. The fall in interest rates is positive for gold prices. The gold prices breaking key long-term resistance levels indicate there may be strong momentum which may continue over the near to medium term, some profit may not be ruled out though,” said Dr Joseph Thomas, Head of Research at Emkay Wealth Management.
In the international market, gold prices soared past $2,200 an ounce for the first time in opening trade. Spot gold rose 0.7 per cent to $2,201.94 an ounce at 9:40 a.m. in Singapore.
Expectations of low 1165117 interest rates makes financial instruments less attractive for investors compared to gold leading to increased purchases of the yellow metal and the rise in prices.
Rising geopolitical risks and buying by central banks, led by China have also fuelled gold prices.
With no end to sight in the Russia-Ukraine war and the Israel-Hamas conflict spreading to the Red Sea region, gold is seen as an attractive safe haven asset by investors.
The demand for gold in the domestic market remains firm amid the marriage season as the precious metal is gifted to brides and grooms in large quantities.
Moreover, gold prices in Hyderabad are also affected by global demand. If the demand for gold is high in other countries, it can cause a surge in gold prices here too. At the time of writing, the 916 gold rate today in Hyderabad is ₹ 43,992 per 8 grams.
| Year | Price (24 carats per 10 grams) |
|---|---|
| 2028 | INR 92,739 |
| 2029 | INR 1,01,786 |
| 2030 | INR 1,11,679 |
| 2031 | INR 1,21,704 |
Will gold rate reduce in 2024?
Will gold rate decrease in coming days 2024?
How much is GST on gold?
3% GST
GST on gold purchase in India attracts 3% GST (1.5% CGST + 1.5% SGST) rate on the value of gold. So, if the value of gold being purchased is Rs. 10,000 the total GST payable on the transaction will be Rs. 300.
Will gold price decrease in 2025?
| Year | Price in the middle of the year | Price at the end of the year |
|---|---|---|
| 2025 | $1,760.65 | $1,739.85 |
| 2026 | $2,023.05 | $1,837.55 |
| 2027 | $1,938.95 | $1,971.45 |
| 2028 | $1,899.15 | $1,954.65 |