Chennai Gold Prices Ease Slightly, Tracking Global Market Signals

The minor drop comes in line with price trends observed in other parts of the country, influenced by fluctuations in global bullion markets and currency exchange rates.

Being denominated in US dollars in the international market, gold’s price in India is highly sensitive to movements in the rupee-dollar exchange rate.

Source : PTI

Gold prices in Chennai softened marginally on Thursday, with 22-karat gold now retailing at Rs 9,290 per gram and 24-karat gold at Rs 10,135 per gram. The minor drop comes in line with price trends observed in other parts of the country, influenced by fluctuations in global bullion markets and currency exchange rates.

India’s reliance on gold imports remains substantial, as recycled metal accounts for only a small portion of supply. Being denominated in US dollars in the international market, gold’s price in India is highly sensitive to movements in the rupee-dollar exchange rate.

Local and Global Factors Shape Gold Movements

In addition to currency shifts, domestic gold rates are subject to import duties, GST, and state-level taxes. Gold has historically been regarded as a safe-haven asset, drawing heightened demand during inflationary phases and periods of financial market uncertainty.

Recent market sentiment reflects a combination of factors — global economic slowdown concerns, changing bond yields, and expectations of central bank policy changes. Analysts highlight that price volatility will likely continue as investors await fresh economic cues from the US and other major economies.

Elsewhere in India, 22-karat gold is priced at Rs 9,305 per gram in Delhi and Rs 9,295 in Ahmedabad and Indore. Mumbai, Bengaluru, and Pune are in line with Chennai at Rs 9,290 per gram.

Gold’s Enduring Value in Indian Portfolios

Although the fall in prices is modest, gold’s reputation as a long-term store of value remains intact. In Chennai, gold purchases are deeply tied to cultural traditions, festivals, and weddings, ensuring consistent demand throughout the year.

Financial planners continue to advocate a balanced allocation to gold in investment portfolios as a safeguard against market volatility and inflation. With both international and domestic economic conditions evolving rapidly, close monitoring of price trends is crucial for prospective buyers.