Hyderabad gold, silver prices surge as jewellery demand drops
HYDERABAD: Gold prices have delivered a sharp shock to buyers, while silver prices continue to race ahead, competing closely with gold. Despite the surge, jewellery purchases at retail stores remain muted, pushing the bullion market into a lull.
Rising prices, falling demand
Traders say the sustained increase in prices since January last year has discouraged consumers from even considering gold purchases. Demand remains weak, yet prices continue to climb, leaving buyers frustrated.
Earlier, gold was considered affordable and was part of every small family occasion. That has changed. Even weddings are seeing reduced use of gold jewellery, with many preferring cash gifts instead. Though gold and silver are deeply rooted in Indian tradition, rising prices have forced families to conduct ceremonies without them.
Global factors drive prices
Industry observers attribute the rise to global developments, economic slowdown overseas, and the rupee’s depreciation against the dollar.
Investment worries persist
Speculation that gold prices could fall sharply in the coming months has also kept investors cautious, with many exploring alternative investment avenues.
On Wednesday morning, prices rose again across the country. In the Hyderabad bullion market, 22-carat gold was priced at ₹1,56,950 per 10 grams, while 24-carat gold stood at ₹1,69,500 per 10 grams. Silver climbed to ₹3,77,600 per kg.
Consumers fear prices may rise further by afternoon, adding to anxiety in an already sluggish market.
