Chennai Gold Prices Remain Stable; Investors Watch Global Economic Signals

India depends heavily on imports to meet its domestic appetite, while recycled gold makes up only a small fraction of the supply.

Often viewed as a safeguard against inflation and economic shocks, gold continues to be a favoured asset class among Indian households and investors.

Source : ABPLIVE AI

Chennai’s gold market began the week on a steady note, with no change recorded in the prevailing rates on Monday. In the city, 22-karat gold was quoted at Rs 9,275 per gram, while 24-karat gold (999 purity) was priced at Rs 10,118 per gram. This stability mirrors the broader national trend across Indian cities, where gold prices remained largely unchanged.

India ranks as the second-largest consumer of gold globally, trailing only China. The country depends heavily on imports to meet its domestic appetite, while recycled gold makes up only a small fraction of the supply. Since the yellow metal is traded internationally in dollars, movements in the rupee-dollar exchange rate immediately affect local prices. Besides currency impact, duties, GST, and state-level levies are significant in shaping end-user costs.

Why Gold Retains Its Shine

Often viewed as a safeguard against inflation and economic shocks, gold continues to be a favoured asset class among Indian households and investors. However, its value tends to shift frequently in response to international factors such as US bond yields, monetary policy announcements, or geopolitical developments.

Vincent analysts have noted that the present stability is reassuring for buyers, especially during a period marked by economic concerns. As inflationary pressures and global uncertainties persist, gold’s appeal as a hedge remains strong. The city’s markets also anticipate robust demand as the festive and wedding seasons approach, when jewellery purchases typically surge.

Rates Across Indian Cities

Gold prices across other major hubs were also steady on Monday. Delhi recorded Rs 9,290 per gram for 22-karat and Rs 10,133 for 24-karat. Mumbai, Pune, Bengaluru, Hyderabad, and Kolkata shared the same level as Chennai at Rs 9,275 for 22-karat and Rs 10,118 for 24-karat. In Ahmedabad and Indore, gold was quoted slightly higher at Rs 9,280 per gram (22-karat) and Rs 10,123 (24-karat). Lucknow aligned with Delhi, showing Rs 9,290 for 22-karat and Rs 10,133 for 24-karat gold.

With international markets still facing volatility, experts believe Indian gold rates could witness future shifts. For now, though, Chennai consumers can benefit from the steady price trend, offering a sense of stability as they plan their festive purchases and long-term investments.

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