Gold rates in Hyderabad slipped notably following the US Federal Reserve’s decision to maintain interest rates unchanged. Both 24 carat and 22 carat gold prices dropped sharply by Rs 600 and Rs 550 respectively in a single day.
Factors Behind the Decline
US Federal Reserve Chair Jerome Powell signaled that inflation is expected to rise in the coming months due to tariffs and other economic pressures, prompting the Fed to maintain a cautious policy stance. This outlook has contributed to reduced demand for gold as investors weigh the impact of potential inflation against interest rate decisions.
Additionally, the ongoing conflict between Israel and Iran remains unresolved. Despite the tense situation, market expectations for a possible de-escalation have tempered gold prices, limiting further gains.
Following recent highs, gold and silver prices retreated to roughly one-week lows. Silver prices, in particular, fell below USD 35.70 per ounce after an earlier sharp rally. The sell-off was driven by investors liquidating bullion holdings to offset losses elsewhere amid rising geopolitical tensions in the Middle East.
Gold Price Trends in Hyderabad
As of Friday, the price of 10 grams of 22-carat gold in Hyderabad stands at Rs 92,100, while 24-carat gold has declined to Rs 1,00,480. Despite the recent dip, gold prices remain significantly higher compared to the beginning of the year, when 22-carat and 24-carat gold were priced at Rs 71,500 and Rs 78,000 respectively — marking a 28 percent increase over the period.
This upward trend in Hyderabad reflects a broader nationwide pattern, with other major cities including Mumbai, Delhi, and Bengaluru also experiencing substantial gold price gains.
