Hyderabad: Gold prices witnessed a sharp decline following recent highs, driven by fluctuations in the international bullion market. The drop presents a buying opportunity for consumers amid shifting global economic conditions.
The decline comes as U.S. retail sales weaken due to rising inflation in January, reducing the likelihood of an interest rate cut by the U.S. Federal Reserve. This development triggered a correction in gold prices globally.
Investor Profit Booking Impacts Prices
With gold prices reaching record levels, investors engaged in profit booking, leading to a sudden fall in prices. The impact is evident in domestic markets, where gold rates have dropped compared to the previous session.
In the international bullion market:
– Spot gold declined by nearly $60 per ounce (31.10 grams), now trading at $2,882 per ounce.
– Spot silver prices fell to $32.17 per ounce.
Meanwhile, the Indian rupee is showing signs of recovery due to Reserve Bank of India (RBI) interventions, currently trading at Rs 86.76 per U.S. dollar.
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Gold and Silver Prices in Hyderabad
In the Hyderabad bullion market, gold prices declined marginally:
– 22-carat gold fell by Rs 100 per 10 grams, now priced at Rs 78,900 per tola.
– 24-carat gold dropped by Rs 109 per 10 grams, now trading at Rs 86,070 per tola.
While gold prices have decreased, silver rates remain stable at record levels. After a Rs 1,000 increase in the previous session, silver continues to trade at Rs 1,08,000 per kg.
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