Global gold price declines, but Hyderabad rates tell different story

Hyderabad: Despite a dip of over 18 per cent in gold rates in Hyderabad from the all-time high recorded on January 29, 2026, the prices are still high compared to last Dhanteras.

However, in the international market, the price of the yellow metal has declined in comparison to last year. Though it increased during the year, it dipped again.

Why are gold rates in Hyderabad up ahead of Dhanteras?

The rates of the yellow metal in Hyderabad on October 18, 2025, were Rs 1,30,860 and Rs 1,19,950 per 10 grams of 24-carat and 22-carat gold, respectively.

Today, the rates of 10 grams of 24-carat and 22-carat gold are Rs 1,46,020 and Rs 1,33,850, respectively. This translates to a surge in rates of 11.5 per cent.

On the other hand, the rate of the metal in the international market was USD 4112.10 per ounce on the last Dhanteras. Today, it is also trading between USD 4058.05 and USD 4146.92 per ounce.

Recently, the price in the international market dipped below last Dhanteras’ level, reaching USD 3,875.44 per ounce, whereas in India, gold rates never fell below last Dhanteras’ levels.

The reason behind the difference in gold rates in the city and globally is the US-rupee exchange rate, as India is an importer of the yellow metal.

Since last Dhanteras, the rupee has declined by 7.62 per cent against the US dollar. The US dollar-to-INR exchange rate was Rs 87.836 on last Dhanteras, which jumped to Rs 94.531 today.

Due to the strengthening of the US dollar against the rupee, gold imports have become costlier, thereby pushing up rates ahead of Dhanteras in Hyderabad.

Future of the yellow metal

Recently, Tang Yuxuan, head of Asia rates and foreign-exchange strategy at JPMorgan Private Bank, warned that gold prices could face further downside into early next year.

Currently, geopolitical reasons are the major factors impacting gold rates.

Due to ongoing conflicts, especially the US-Iran conflict, the Saudi Arabia-Houthis conflict, and the Russia-Ukraine war, inflation is rising across the globe.

In the US, due to inflation, the Federal Reserve is increasing interest rates, thereby attracting investors to invest in government bonds.

When interest rates go up, investors will move their funds from gold, which does not have any real yield, to bonds.

However, once the wars end, crude oil prices may dip, thereby cooling inflation, and investors are then expected to return to gold.

Due to uncertainty and the rising US 10-year Treasury yield, Tang Yuxuan projected USD 4,500 an ounce by mid-2027 and USD 5,000 by the end of that year.

This means gold rates in Hyderabad may go up to Rs 1,60,000 by mid-2027 and Rs 1,77,000 by the end of 2027.

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