Gold Prices Soar To Record Highs In Chennai Ahead Of Dhanteras
The current rates in Chennai stand at Rs 11,860 per gram for 22-karat gold and Rs 12,938 per gram for 24-karat gold (999 gold), reflecting strong demand in the southern city.
Chennai witnessed gold prices climbing to unprecedented levels on Wednesday, with the Multi-Commodity Exchange (MCX) recording rates above Rs 1.27 lakh per 10 grams. The surge comes as investors gear up for Dhanteras, traditionally a peak buying period for gold. The current rates in Chennai stand at Rs 11,860 per gram for 22-karat gold and Rs 12,938 per gram for 24-karat gold (999 gold), reflecting strong demand in the southern city. Jewellery stores across the city reported increased footfall, with consumers looking to invest in gold both for ritualistic purposes and as a hedge against market volatility.
The rise in domestic gold prices mirrors global trends. Spot gold surged 0.4 per cent to $4,155.99 per ounce, while US gold futures for December delivery were trading 0.3 per cent higher at $4,174.30 per ounce. Analysts attribute the rally to a combination of geopolitical tensions, expectations of US Federal Reserve rate cuts, and a growing preference for safe-haven assets amid market uncertainty. Economic experts note that persistent inflation concerns in various economies are also contributing to the sustained demand for gold as a reliable store of value.
Silver and Other Metals Also Gain
Silver prices also saw upward momentum, opening at Rs 1,59,800 per kg and touching Rs 1,61,418 per kg during early trade. On the MCX, gold futures opened 0.52 per cent higher at Rs 1,26,915 per 10 grams before climbing to Rs 1,27,500. In early trade, gold was trading 0.46 per cent up at Rs 1,26,835 per 10 grams, while silver rose 0.52 per cent to Rs 1,60,333 per kg. Traders say the surge in metals is being fuelled not just by festive demand but also by investors seeking protection from currency fluctuations and global financial instability.
Experts say that renewed US-China trade tensions have reinforced the safe-haven appeal of gold. The US is considering additional trade restrictions, including on cooking oil, which has added to uncertainty. Coupled with strong buying by central banks and steady inflows into gold exchange-traded funds (ETFs), these factors are driving prices to new highs. Analysts also suggest that increased geopolitical friction and ongoing concerns over global economic growth have played a significant role in sustaining gold’s upward trajectory.
Federal Reserve Chair Jerome Powell’s comments about taking rate decisions on a "meeting-by-meeting" basis have also boosted expectations of a 25-basis-point rate cut, with another likely in December. This, analysts note, is a key factor propelling gold’s momentum, encouraging both institutional and retail investors to add gold to their portfolios as a hedge against uncertain financial conditions.
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