Gold prices plunge in Hyderabad, hit one-month low
Gold prices remain weak as optimism over a possible US-China trade deal reduces investor demand for safe-haven assets.
Gold Prices Plunge in Hyderabad Amid US-China Trade Optimism
Gold prices tumbled sharply in Hyderabad and across India on Tuesday, hitting a one-month low as optimism over a possible US-China trade deal reduced the metal’s safe-haven appeal. The rates fell by ₹11,190 from their all-time high, with 24-carat gold now priced at ₹1,21,580 per 10 grams and 22-carat gold at ₹1,11,450 per 10 grams.
Globally, gold slipped below the key level of USD 4,000 an ounce as easing trade tensions between Washington and Beijing encouraged investors to shift toward riskier assets like equities. The optimism that a long-awaited trade agreement may soon be finalized has weighed heavily on bullion markets worldwide.
Experts said gold continues to trade under pressure as investors anticipate a breakthrough in negotiations between the world’s two largest economies. “The reduction in safe-haven demand has directly impacted gold prices,” said a senior commodities analyst. “Markets are reacting to signals that both the US and China are moving closer to a resolution, which reduces uncertainty.”
US President Donald Trump and Chinese President Xi Jinping are expected to finalize the trade deal framework soon, with follow-up meetings already being discussed. Trump also expressed confidence in reaching a separate agreement with Japan, which further strengthened global risk sentiment and added to the downward pressure on gold.
The fall in gold prices also had a ripple effect on silver. In Hyderabad, silver rates registered a steep decline of ₹41,000 from record highs, now standing at ₹1,66,000 per kilogram. Traders say both metals are facing strong headwinds as global confidence returns to equity and commodity markets.
However, analysts believe this correction may be temporary. A recent report by Ventura Securities noted that while gold has declined in the short term, longer-term fundamentals remain supportive. The report highlighted dovish signals from the U.S. Federal Reserve, continued inflows into gold exchange-traded funds (ETFs), and steady central bank purchases as factors likely to drive the next big rally.
“Starting from Dhanteras 2025, gold could enter a new bullish phase,” the Ventura report stated. “The uncharted territory of $5,000 per ounce, or approximately ₹1,50,000 per 10 grams, could be achievable by 2026.”
For now, however, Indian consumers are benefiting from the dip, with jewelers reporting a mild uptick in retail buying as festive-season discounts combine with softer prices. “Many buyers who postponed purchases earlier are now returning to the market,” said a Hyderabad-based jeweler. “If prices remain stable for a few more days, we expect strong sales ahead of Diwali.”