Demand for Gold and Silver in India
Gold and silver are in high demand in India, especially for weddings and important occasions. These metals are considered essential for cultural and traditional reasons.
Gold’s Role in Celebrations
Gold is a must-have for weddings and auspicious events. Regardless of their financial situation, people believe it’s important to own gold. Women wear gold as decorative jewelry.
Cultural Significance of Gold
Even those facing poverty consider owning gold a priority due to cultural beliefs. It’s seen as a symbol of prosperity and tradition.
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Gold Price Reduction in Hyderabad
In Hyderabad, gold rates have slightly decreased. The price of 22 carat gold per 10 grams has dropped by Rs. 100, now trading at Rs. 55,000. Similarly, 24 carat pure gold rates have decreased by Rs. 100 to Rs. 60,000.
India’s Unique Gold Holdings
Reports suggest that India’s gold holdings aren’t accurately represented in global estimates, making it stand apart from the World Bank’s gold.
Annual Gold Imports and Reserve Bank’s Role
India imports several tons of gold each year, and the Reserve Bank plays a significant role in acquiring gold. However, there has been a recent slowdown in demand due to a lack of auspicious moments.
Anticipated Demand Increase
With the approaching festive season and auspicious occasions, it’s expected that purchases of gold and silver jewelry will rise, which is good news, especially for women.
Declining Gold and Silver Prices
Currently, gold and silver prices are on the decline. The price of gold has slightly decreased, and silver has fallen by Rs. 1000 in Hyderabad.
Global Gold Market Decline
Internationally, the price of gold is collapsing, with a drop of $20 in just two days. An ounce of gold now costs around $1925. Spot silver rates have also decreased, with today’s rate at 22.77.
Silver’s Decrease in Value
The price of silver has taken a hit, dropping by Rs. 1000 per kg in Hyderabad. Despite this decrease, silver sales have increased, and more people are opting for silver jewelry over gold.
Gold and Silver Price Fall in Delhi
Even in the national capital, the prices of gold and silver have significantly fallen. The price of silver per kilo has decreased by Rs. 1000 to Rs. 75,100. Likewise, both 22 carat and 24 carat gold rates have fallen by Rs. 100.Impact of Interest Rate Hikes
The primary reason for the declining prices of gold and silver is the US Federal Reserve’s plan to raise interest rates. This has led to a stronger dollar and a shift in investments towards higher yielding bonds, putting pressure on the prices of these precious metals.