Gold Prices In Hyderabad Steady After Falling By Rs 13,100 Per 100 Grams In 24K; Silver Falls By Rs 500; WHY?

Gold prices in Hyderabad is steady on August 8th, after falling by a whopping Rs 13,100 in 100 grams of 24K in past two days. On the other hand, silver prices slipped sharply with 1Kg of this precious metal sliding below Rs 87,000 mark. Yellow metal and silver struggled to keep momentum on the upward side because of growing recession fears and pause in gold buying by one of the world's largest economy, China.

Gold and silver are in a volatile trend after US' unemployment data surpassed Fed's comfortable limit, hinting at a much urgent requirement for a rate cut. Also, in India, gold prices are buzzing after RBI decided to keep repo rate unchanged for ninth time in a row at 6.5%. Lowering interest rates by central banks work as an upside fuel for gold, as dollar demand in overseas market looses shine.

Gold prices in Hyderabad on August 8:

24K gold price in 100 grams stood at Rs 6,92,700 on August 8. This gram of yellow metal plunged by Rs 4,400 on August 7 and by Rs 8,700 on August 6th, cumulatively falling by Rs 13,100 between the two days.

Further, 10 grams of 24K is at Rs 69,270, while 8 grams is at Rs 55,416, and 1 gram is at Rs 6,927.

Also, 22K of 100 grams is available at Rs 6,35,000, 10 grams is at Rs 63,500 in the same carat. Additionally, 8 grams price here is at Rs 50,800, and 1 gram is at Rs 6,350.

Coming to 18K, 100 grams of gold is priced at Rs 5,19,600, followed by 10 grams at Rs 51,960, 8 grams at Rs 41,568, and 1 gram at Rs 5,196.

Silver Prices In Hyderabad:

1Kg silver dipped by Rs 500 to Rs 86,500 compared to the previous day's Rs 87,000. Further, 100 grams is down by Rs 50 to Rs 8,650, 10 grams is lower by Rs 5 to Rs 865. Also, 8 grams and 1 gram gold is down by Rs 4 and Rs 0.50 to Rs 692 and Rs 86.50 respectively.

Rahul Kalantri, VP Commodities, Mehta Equities said, "Gold and silver gained in the early trading session but were unable to sustain higher levels amid US recession fears and a pause in gold buying by the Chinese central bank. Volatility in precious metals arose after the U.S. unemployment rate surged to 4.3%. Recent U.S. economic data indicate a faster-than-expected slowdown, leading to predictions of more significant interest rate cuts."

According to Kalantri, this scenario benefits non-yielding assets like gold. Concerns about China's economic issues and Middle Eastern conflicts further enhance gold's appeal as a safe haven. However, rising demand for the U.S. Dollar, driven by recovering Treasury bond yields and positive market sentiment, might limit gold's price increases in the short term.

Looking ahead, the expert added, gold has support at $2,365-$2,350, with resistance at $2,404-$2,422. Silver has support at $26.55-$26.35, with resistance at $27.05-$27.24. In INR, gold has support at Rs 68,610-68,410, with resistance at Rs 69,110-69,340. Silver has support at Rs 78,150-77,520, with resistance at Rs 79,490-80,040."