Indian Women’s Love for Gold
Indian women have a special fondness for gold. They wear gold jewelry to adorn themselves, particularly during festivals, auspicious occasions, and weddings. This enhances their beauty and makes them feel unique. As a result, gold is more popularly purchased during these significant times. However, due to soaring prices and reduced demand, there has been a recent slowdown in gold purchases, even during harvest seasons.
Record-High Rates and Falling Demand
Gold prices have reached record highs, making it difficult for people to buy gold. Simultaneously, the demand for gold has dropped significantly. July saw gold rates at their peak, but come August, there was a sharp decline. In the past 10 days, gold prices have fallen seven times. Despite these changes, current gold prices are showing stability.
Impact of US Federal Reserve’s Actions
When the US Federal Reserve raises interest rates, the value of the dollar gradually rises. However, this causes the value of gold to fall, ultimately affecting gold prices. At the moment, spot gold is being traded at $1888 per ounce in the global market. Additionally, spot silver is valued at $22.77. On the other hand, the Indian rupee has hit an all-time low, currently sitting at 83.22 rupees against the dollar.
Domestic Gold Price Trends
Taking a look at domestic gold prices in Hyderabad, the rate for 22 carat gold is Rs. 54,100. In August alone, there has been a decrease of over Rs. 1000 in the price. This significant drop within just 10 days is worth noting. Remember that back in May, gold rates reached a lifetime high. On May 5th, the price of gold hit Rs. 57,200 per 10 grams. However, the current rate is Rs. 54,100, indicating a decrease of Rs. 3100 within three months. As for 24 carat gold, it is trading at Rs. 59,020 per 10 grams.
Price Changes in Different Locations
Apart from Hyderabad, gold prices have also seen a decrease in Delhi. The price for 10 grams of 22 carat gold is Rs. 54,250, while 24 carat gold is priced at Rs. 59,170. Despite stable gold prices, silver prices have risen. In Delhi, the cost of silver per kilogram has increased by Rs. 1000, reaching a value of Rs. 73,500. Similarly, in the Hyderabad market, the price of silver has gone up by Rs. 1000, now trading at Rs. 76,700 per kilogram.