Gold Rates in Hyderabad Reach All-Time High Amid Trade War Fears
The ongoing trade tensions between the United States and other major economies have sent shockwaves through the global market, causing gold rates in Hyderabad to reach an all-time high. On Monday, the price of 10 grams of 22-carat gold in the city touched a record high of ₹79,800, while 24-carat gold soared to ₹87,060. This surge in gold rates is a clear indication of the growing uncertainty and fear among investors, who are seeking safe-haven investments to protect their wealth.
As the world’s leading economies engage in a bitter trade war, the value of traditional assets such as stocks and bonds has plummeted. Meanwhile, gold, which is often seen as a safe-haven asset, has emerged as a preferred choice for investors seeking to diversify their portfolios. The metal’s value is not directly linked to the performance of the stock market or the economy, making it an attractive option for those looking to hedge against market volatility.
The recent surge in gold rates in Hyderabad is not an isolated phenomenon. Gold prices have been rising globally, driven by concerns over the trade war and its potential impact on the economy. The price of gold has increased by over 10% in the past month alone, with some analysts predicting further gains in the coming weeks.
The trade war between the US and China, which is the world’s largest economy, has been a major contributor to the rise in gold rates. The US has imposed tariffs on billions of dollars’ worth of Chinese goods, prompting China to retaliate with its own tariffs on US imports. This tit-for-tat trade war has led to a significant decline in global trade, causing economic uncertainty and fear among investors.
Gold is often seen as a safe-haven asset during times of economic uncertainty, as it is perceived to be a stable store of value. In times of crisis, investors often flock to gold, driving up its price. The recent surge in gold rates in Hyderabad is a clear indication of the growing fear and uncertainty among investors, who are seeking safe-haven investments to protect their wealth.
The rise in gold rates has also been driven by the weakness of other asset classes. The stock market has been volatile in recent weeks, with some analysts predicting a decline in the coming months. The value of bonds has also been declining, as interest rates rise and investors seek higher yields. In this environment, gold has emerged as a popular choice for investors seeking to diversify their portfolios and protect their wealth.
The surge in gold rates has also had a significant impact on the jewelry industry in Hyderabad. Jewelers in the city are reporting a significant increase in demand for gold ornaments, as customers seek to take advantage of the low prices. The rise in gold rates has also led to an increase in the price of gold jewelry, which is likely to benefit jewelers in the long run.
In conclusion, the gold rates in Hyderabad have reached an all-time high amid fears of a trade war. The surge in gold rates is a clear indication of the growing uncertainty and fear among investors, who are seeking safe-haven investments to protect their wealth. As the trade war continues to unfold, it is likely that gold rates will continue to rise, making it an attractive option for investors seeking to diversify their portfolios.
Source: https://www.siasat.com/gold-rates-in-hyderabad-reach-all-time-high-amid-trade-war-fears-3178266/
