Gold rates dip 19 pc in Hyderabad: Is it the right time to buy?

Geopolitical reasons are the major factors impacting gold rates.

Hyderabad: Gold rates, which reached an all-time high on January 29, 2026, have dipped by over 19 per cent in Hyderabad, driving people into a dilemma whether to buy the yellow metal or wait for a further dip.

Will gold rates in Hyderabad go up?

With the festival of Diwali next month, people are likely to buy the yellow metal, causing prices to rally.

Though in the short term, there might be a rise in demand in view of the festival, it is unlikely to impact the prices, as mainly global factors impact the rates.

Recently, Tang Yuxuan, head of Asia rates and foreign-exchange strategy at JPMorgan Private Bank, warned that gold prices could face further downside into early next year.

Though JP Morgan Global Research predicted in June that the prices may rise to USD 6,000 per ounce by the final quarter of 2026, it is unlikely to happen due to global factors. Currently, it is around USD 4,050 per ounce.

Central bank purchases

As per the JP Morgan Global Research analysts, the average gold purchases by central banks were 225 tons per quarter from 2021 to 2025.

In Q1 2026, net reported purchases of gold amounted to only 16 tons. Although it looks like purchases by central banks declined, unreported purchases could be higher.

As per World Gold Council estimates, the average gold purchases by central banks in Q1 2026 could be 244 tons.

The analysts say that China imported 317 tons in Q1 2026, as the country appears to be building gold reserves to establish the renminbi as a credible reserve currency alternative.

Factors impacting yellow metal prices

Currently, geopolitical reasons are the major factors impacting gold rates.

Due to ongoing conflicts, especially the US-Iran conflict, the Saudi Arabia-Houthis conflict, and the Russia-Ukraine war, inflation is rising across the globe.

In the US, due to inflation, the Federal Reserve is increasing interest rates, thereby attracting investors to invest in government bonds.

When interest rates go up, investors will move their funds from gold, which does not have any real yield, to bonds.

However, once the wars end, crude oil prices may dip, thereby cooling inflation, and investors are then expected to return to gold.

Current gold rates in Hyderabad

Currently, the rates in Hyderabad are Rs 1,31,950 and Rs 1,43,950 per 10 grams of 22-carat and 24-carat gold, respectively.

The rates were Rs 1,63,950 and Rs 1,78,850 on January 29, 2026, when gold rates hit an all-time high.

If the forecasts made by JP Morgan in June turn out to be correct, then the rates of 24-carat gold in Hyderabad are likely to spike to Rs 2,30,000.

In order to rise above the Rs 2 lakh mark, US inflation data must cool and crude oil prices must decline, which is only possible when the war ends.

Due to uncertainty and the rising US 10-year Treasury yield, Tang Yuxuan projected USD 4,500 an ounce by mid-2027 and USD 5,000 by the end of that year.

This means gold rates in Hyderabad may go up to Rs 1,60,000 by mid-2027 and Rs 1,77,000 by the end of 2027.