Gold and silver prices fell sharply across Andhra Pradesh and Telangana on Thursday, with 24-carat gold dropping Rs 1,700 per 10 grams and silver falling Rs 5,000 a kilogram as global bullion stayed under pressure ahead of the Federal Reserve’s policy meeting.
Gold Prices Fall in Andhra Pradesh and Telangana
The decline matters because precious metals are often a refuge when markets are anxious, but this week’s move shows investors pricing in a stronger dollar, less aggressive U.S. rate cuts and shifting risk sentiment. For households and jewelry buyers in Hyderabad, Vijayawada and Visakhapatnam, the pullback also trims purchase costs during the festive season, even as it dents recent paper gains for existing holders.
Sentiment Indicators
In Hyderabad, 24-carat gold fell to Rs 1,44,380 per 10 grams, while 22-carat jewelry gold dropped to Rs 1,32,350. Silver traded at Rs 2,25,000 a kilogram in the local market, matching the levels quoted in Vijayawada and Visakhapatnam.
The move comes after global gold prices slid to around $3,990 an ounce before recovering modestly, underscoring how quickly the metal has swung in late October. The latest weakness also lines up with Adalytica’s Gold Fear & Greed Index, which shows “Extreme Fear” at 9, a sign of sharply deteriorating sentiment around the metal.
Geopolitical tension in the Middle East has supported the case for safe-haven buying, but that has been outweighed for now by expectations that the Fed may keep rates unchanged because of inflation. Higher-for-longer U.S. rates tend to lift Treasury yields and the dollar, making non-yielding assets such as gold less attractive.
The selloff has spilled into bullion-related funds as well, with the SPDR Gold Shares ETF down to $373.51 and the VanEck Gold Miners ETF at $83.95, both well below recent highs. Technical readings on those funds show softer momentum, with prices below their 200-day moving averages and relative strength readings cooling after earlier overbought conditions.
Investors will now watch the Fed meeting next week, along with any further escalation in the Middle East and movements in crude oil, for clues on whether gold can stabilize or whether the recent drop extends into November.
| Entity | Gains | Losses |
|---|---|---|
| Jewelry buyers in AP and Telangana | ▲Lower festive-season purchase prices | ▼Recent gold holders |
| Gold and silver sellers | ▲Quicker inventory turnover | ▼Margin pressure on stock bought higher |
| ETF investors in GLD and SLV | ▲Potential entry point if prices stabilize | ▼Holders of bullion exposure |
| Gold miners | ▲None from the drop | ▼Miners and mining ETF investors |
