Hyderabad: Gold prices take a tumble, investors seek alternative

Hyderabad: Gold prices, which caused financial strain for buyers in the past month, have begun to decrease in recent days. According to bullion market traders, the prices are expected to further decline in the upcoming days.

The price which was sailing at around Rs 63,000 per ten grams (24 carat) during the last week of May has now gone down to Rs 60,700 per ten grams (24 carat) on Wednesday giving respite to the people interested in the yellow metal. The traders said that while the existing investors were selling off their invested gold, there is no demand in the market now. The end of the wedding season and impact of Ashada Masam has also led to the decreasing trend in the gold prices.

The National Gold, Silver Refiners and Jewellers Association vice president Prakash Patil said that the upward trend in the prices of gold started ever since the Covid-19 pandemic when all the businesses were down, and people saw gold as the best investment. People buy gold because this can be encashed during emergencies. Now with the corona effect subsiding in the world, the investors are looking at different options and disposing off the gold they had invested in the past.

Besides this, the traders in the bullion market and jewellers have stopped taking the Rs 2,000 note. Initially when the RBI notification about the depositing of Rs 2,000 notes came in many thronged to gold shops to purchase at a higher price so as to dispose of their notes but this phenomenon has also ended now, the traders said.

K Adarsh, a techie from the city said that he had purchased gold during the last week of May at a price of Rs 62,900 because of an urgent need because of a function. He said that if there was no function, he would have waited for the price to go down. “When there was a need, the prices were high but now the prices are down but there is no money,” said Adarsh.

Prakash Patil further said that the gold prices would be depending on how strong the US dollar is. If the dollar rate is high, the gold price would also decrease. However, he said that the only adverse impact would be on the global recession in the world as predicted by the financial experts.