Gold Prices Rise In Chennai On July 2 After Week-Long Slump
After an extended period of decline, gold prices in Chennai have begun to climb once again, reflecting a reversal in sentiment both locally and across broader Indian markets.
On July 2, rates of the yellow metal edged upwards, supported by stronger global signals and increased domestic demand. This recovery comes amid renewed interest from investors, who are responding to fluctuations in currency values and evolving expectations around US trade and economic policy.
As of Tuesday, the price of 22-karat gold in Chennai was recorded at Rs 9,021 per gram, while 24-karat gold (commonly known as 999 gold) was priced at Rs 9,841 per gram. The uptick followed a brief but notable rally that started the previous day, ending a seven-day streak of falling prices. The current movement indicates a shift in market tone as buyers return, prompted by global cues and supportive fundamentals.
Nationwide Rally Mirrors Chennai’s Recovery
The price momentum observed in Chennai is consistent with the trend seen in other Indian cities. In Delhi, gold of 99.9 per cent purity jumped by Rs 1,200 to Rs 98,670 per 10 grams on Tuesday, compared to Rs 97,470 the day before. Meanwhile, 99.5 per cent pure gold gained Rs 1,100, reaching Rs 98,150 from the previous close of Rs 97,050.
According to the All India Sarafa Association, “fresh buying by stockists and strong global market signals” were key factors behind the upward price movement. Traders have attributed the sharp rebound to a combination of increased demand and positive international indicators, particularly those tied to the dollar and US bond yields.
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Global Dollar Trends and Indian Taxes Influence Gold Rates
India, the second-largest consumer of gold after China, relies predominantly on imports to meet its domestic demand. Since gold is globally denominated in US dollars, changes in the currency’s strength significantly affect Indian pricing. A weaker dollar generally supports gold prices in rupee terms, while a stronger dollar can have the opposite effect.
Aside from currency dynamics, local factors such as import duties, Goods and Services Tax (GST), and state-specific levies play a role in shaping final consumer prices. Gold is also seen as a traditional hedge against inflation and a stable asset during economic instability, making it highly responsive to macroeconomic shifts and geopolitical uncertainties.
In addition, developments in global interest rates, particularly US bond yields, and expectations surrounding economic growth and central bank policies continue to shape investor behaviour. With volatility in both global and domestic markets, prices of gold in Chennai and elsewhere are expected to remain reactive in the near term.
As gold regains ground, market watchers will be closely monitoring international trends and policy updates that may further influence prices in the days ahead.
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