Hyderabad: The gold rates in Hyderabad have surged after the recent crash that occurred following the announcement of a reduction in customs duty on the yellow metal.
After Finance Minister Nirmala Sitharaman announced the reduction in the rate from 15 percent to 6 percent, the rates of the yellow metal crashed and reached Rs. 63,000 and Rs. 68,730 per 10 grams for 22-carat and 24-carat gold, respectively.
Gold rates in Hyderabad, other cities rebound
The reduction in basic customs duty on gold, silver, and platinum has been a long-pending demand of the gems and jewelry industry.
Although the rates declined following the duty cut, they began rising again on July 27 and have continued to increase.
As of July 29, the prices of 22-carat and 24-carat gold per 10 grams in the city are Rs. 63,400 and Rs. 69,160, respectively. The rates jumped by Rs. 430 per 10 grams in the last three days.
Following are the gold rates in Hyderabad and other cities:
| Indian cities | 22-carat gold rates of 10 grams (in Rs) | 24-carat gold rates of 10 grams (in Rs) |
| New Delhi | 63550 | 69310 |
| Kolkata | 63400 | 69160 |
| Mumbai | 63400 | 69160 |
| Hyderabad | 63400 | 69160 |
| Chennai | 64150 | 69980 |
Reasons for rise in prices
The surge in gold rates is attributed to the anticipated rise in US Fed rates.
Markets are expecting a Fed rate cut in September. Another cut is also expected in December of this year.
As India is an importer of gold, the rates in the country heavily depend on international factors, including the Fed rate.
Though gold rates in Hyderabad and other cities in India are likely to rise in the coming days, the government’s decision to cut duty has resulted in a drop in rates. However, it will curb smuggling as the incentives for the crime have decreased.
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