Gold, Silver Prices Soar Again: Hyderabad Sees Sharp Rise Amidst Low Demand

• Gold and silver prices surged for the second consecutive day, with significant increases reported in Hyderabad on December 18.
• In Hyderabad, 24-carat gold rose by Rs. 330/10g to Rs. 1,34,840, and silver jumped by Rs. 2,000/kg to Rs. 2,24,000.
• Despite rising prices, demand for gold remains low in India and China, leading to increased discounts from dealers (up to $34/ounce in India).
• The price hike is attributed to the strengthening of the dollar against the rupee, even as wedding season demand fails to boost sales.
• MCX futures for gold and silver, however, saw a slight decline, contrasting with the spot market trends.

Why It Matters: Gold and silver prices continue to climb in spot markets despite weak demand, driven by dollar strength.