Hyderabad: The rates of gold increased in Hyderabad on Thursday due to many reasons including Russia-Ukraine tension.
In the city, the rates of 24-carat and 22-carat gold increased by Rs. 820 and Rs. 750 respectively. Since November 8, the rates increased by Rs. 2130 and Rs. 1950 respectively.
Currently, the rates of 24-carat and 22-carat gold in Hyderabad are Rs. 53180 and Rs. 48750 per 10 grams respectively. In the international market, gold was at $1773.4 per ounce.
Why are gold rates in Hyderabad increasing?
Since September, the gold rates was increasing. In the month, the rates increased by more than 0.3 percent whereas, in October, the gold rates in Hyderabad increased by 0.22 percent.
Although, there are many factors responsible for the rise or fall in gold rates in India, following are the top five.
- Gold reserve
- Global Impact
- Seasons, festivals.
- Interest rate
Out of the above-listed factors, currently, inflation and global impact are playing a major role in the rise in gold rates in Hyderabad and other cities in India.
Due to rising inflation in all most all countries in the world, people have started investing in gold.
The yellow metal is considered a safe haven, especially during rising inflation when the purchasing power of individuals goes down.
The geopolitical situation also plays a major role in the gold rates globally as whenever there is any uncertainty, people start shifting their investment toward gold to avoid the risk of loss.
Current tensions between Russia and Ukraine have not only pushed gas prices up in many European countries but also resulted in a rise in inflation in almost all countries in the world.
The ongoing war between the two countries still worries investors and they are avoiding investing in equities and other financial instruments.
Many of them are parking their funds in gold which is considered safe heaven thereby increasing the demand for the yellow metal.
Due to a surge in the demand for yellow metal and the increase in the dollar-rupee conversion rate, the gold rates in Hyderabad and other districts are rising continuously.