Gold prices have seen a sharp surge overnight in Hyderabad. The price of the yellow metal has increased by ₹800 crore after the . One gram of gold is being sold at ₹16,500 in the city on Wednesday, up from ₹15,700 per gram on Tuesday.
Gold traders say they have been witnessing a cash crunch in the market, resulting in a significant drop in sales over the last few days. Prime Minister Narendra Modi’s call might also have some impact on the sales, they said.
“After the increase in the duties yesterday, one gram of gold costs ₹17 lakhs for 100 grams. But we are selling at ₹16,500 a gram as internal gold stocks are currently being sold,” a bulk gold trader told businessline.
“Sales have dropped because of a severe cash crunch. In some instances, people are selling gold at a ₹500-per-gram discount to free up liquidity,” he said.
Namashivaya, a gold analyst at Zen Securities, said that gold sales have dropped, impacting the jewelry business. He felt that gold prices might consolidate after a rise, depending on the geopolitical situation.