Gold rates in Hyderabad fall as India-Pakistan tensions ease
Hyderabad – The gold market in Hyderabad witnessed a noticeable dip in prices on Tuesday as geopolitical tensions between India and Pakistan began to subside. Investors, who had previously sought the safety of gold amid cross-border escalations, have now turned towards riskier assets following diplomatic progress.
According to local bullion traders, the price of 24-carat gold dropped by ₹350 per 10 grams, while 22-carat gold saw a reduction of ₹320. Analysts attribute this decline to easing fears of conflict and improved investor sentiment.
Over the past two weeks, gold prices had surged sharply due to rising tensions, especially after military escalations were reported. However, the recent peace overtures, including backchannel talks and public statements by officials from both nations, have reassured the markets.
“Gold traditionally acts as a hedge during uncertainty. With the immediate threat of war fading, demand has softened, and prices are adjusting,” said Mahesh Agarwal, a bullion analyst at Telangana Bullion Association.
International markets also reflected similar trends, with gold prices stabilizing around $2,330 per ounce after a volatile fortnight.
Jewelry shop owners in Hyderabad’s Abids and Charminar areas confirmed a drop in footfall during the peak tension period. Now, however, many are witnessing a return of buyers hoping to capitalize on the price dip.
Economists suggest that while the current decline may be temporary, global factors including U.S. interest rate decisions, inflation data, and crude oil prices will continue to influence gold rates in India.
The Reserve Bank of India (RBI) has also not indicated any aggressive policy changes, adding to investor calm.
As peace talks continue, citizens and traders alike hope for long-term stability in the region—something that could keep gold rates from fluctuating wildly in the coming weeks.
