Gold prices on the rise this wedding season in Hyderabad

For the past 10 days, the price of gold has been making its way up and on Wednesday, the value of gold notched a six-month high in the Hyderabad market

Hyderabad: The city is geared up to witness a fully-fledged wedding season sprinkled with all the glitter and liveliness that lacked during the last two years due to the pandemic. Scores of weddings are expected to take place in the next two months.

According to the pandits, many auspicious muhurat days are lined up till the end of February and a few in March. Markets are abuzz as people are flocking to outlets to wrap up their shopping. However, the rise in gold prices has dampened jewellers’ enthusiasm.

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For the past 10 days, the price of gold has been making its way up and on Wednesday, the value of gold notched a six-month high in the Hyderabad market. The cost of 24-carat gold settled at Rs 57,930 per 10 grams on the back of a 20 per cent surge in the international rate over three months.

A spike of over Rs 6,000 was witnessed from the day of Dhanteras (October 22, 2022) in the city. The main reason for the record rally in gold prices is the weakness of the dollar, according to city-based jewellers, and also due to threat of global recession and the possibility of the US Federal Reserve slowing down its tightening pace further.

The prices are worrying customers leading to a spike in exchange-based transactions. Despite being a crucial period, jewellers say, they are seeing a drop in walk-ins and inquiries.

“There is barely any demand for jewellery. When purchasing, people are mostly exchanging seldom-used ornaments to cut down the total spend. The price may touch the Rs 60,000 mark per 10 grams in coming days,” says Neeraj, a city-based jeweller. He added that people are also opting for diamond jewellery as gold content is not so much.