Gold prices in Chennai surged on July 12, reflecting broader national trends that have seen a steady rise in bullion rates amid global market volatility. As per the latest rates, 22-carat gold in the city is priced at Rs 9,140 per gram, while 24-carat gold (also referred to as 999 gold) stands at Rs 9,971 per gram.
India, ranked as the world’s second-largest gold consumer after China, continues to rely on imports to meet domestic demand. Only a small share of consumption is met through recycled gold. Since gold is traded globally in US dollars, any shift in currency exchange rates directly affects local pricing. In addition, several domestic cost components—such as import duties, GST, and state-level taxes—contribute to final retail rates.
Despite its longstanding status as a hedge against inflation and economic turbulence, the metal's price is also influenced by macroeconomic indicators, including global bond yields and broader financial sentiment.
Bullion Prices Climb in Other Indian Cities
Elsewhere, gold prices were consistent across key Indian metros. In Delhi, 22-carat gold was priced at Rs 9,155 per gram and 24-carat gold at Rs 9,986. Similar rates were recorded in Bengaluru, Mumbai, Pune, Hyderabad, and Kolkata. Ahmedabad registered slightly higher prices, with 22-carat gold at Rs 9,145 per gram and 24-carat gold at Rs 9,976.
Silver prices have also soared. According to the India Bullion and Jewellers Association (IBJA), silver touched a new all-time high of Rs 1,10,290 per kilogram, marking a single-day gain of Rs 2,356.
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RBI Data Shows Rise in Gold Reserves
The Reserve Bank of India (RBI) reported an increase of $342 million in the country’s gold reserves for the week ending July 4, bringing the total to $84.846 billion. This comes alongside a rise in Special Drawing Rights (SDRs) with the International Monetary Fund (IMF), which grew by $39 million to reach $18.868 billion. India’s IMF reserve position also rose by $107 million to $4.735 billion.
India's overall forex reserves now stand at $699.736 billion, slightly below the all-time high of $704.885 billion recorded in September 2024. These figures reflect broader investment trends as global investors flock to safe-haven assets amid concerns about rising trade tensions.
Internationally, gold climbed 1.01 per cent to $3,358 per ounce, while silver gained 2.92 per cent to reach $38.40 per ounce. Analysts attribute the surge in precious metal demand to heightened geopolitical risk and expectations of prolonged economic uncertainty.