Gold Price Today: Chennai Rates Steady, Global Trends Turn Cautious

Gold prices in Chennai opened on a stable note on July 8, with 22-karat gold trading at Rs 9,060 per gram, and 24-karat gold (also known as 999 purity) priced at Rs 9,884 per gram, according to data from Goodreturns. These rates place the southern metro in line with other major cities such as Mumbai, Pune, Kolkata, and Bengaluru, where prices also held at similar levels.

In contrast, gold prices in Delhi stood marginally higher at Rs 9,075 per gram for 22-karat and Rs 9,899 per gram for 24-karat gold. Ahmedabad recorded slightly elevated rates as well, quoting Rs 9,065 for 22-karat and Rs 9,889 per gram for 24-karat gold.

National Price Trends Show Slight Dip

The domestic bullion market witnessed a modest pullback in the previous session. On July 7, Monday, gold prices in the national capital dropped by Rs 550, settling at Rs 98,570 per 10 grams. This came after the yellow metal closed at Rs 99,120 per 10 grams on Saturday, gaining Rs 100 from the earlier close. Meanwhile, gold of 99.5 per cent purity was down by Rs 500, ending at Rs 98,100 per 10 grams.

Silver rates, however, remained unchanged for the second consecutive session, staying firm at Rs 1,04,800 per kilogram, inclusive of taxes.

According to traders, the recent drop in gold prices can be attributed to softer global cues and investor profit-booking at elevated levels. "Gold resumed trading on a weaker note, affected by the recovery of the US dollar and diminishing expectations for an interest rate cut following stronger-than-expected US job market data," said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.

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Global Sentiment and Fed Policy to Shape Outlook

Internationally, spot gold declined by $38.95 or 1.17 per cent, settling at $3,297.69 per ounce. Market participants noted that the recent ceasefire announcements and robust US economic data have dampened safe-haven demand.

However, institutional buying remains strong. “The yellow metal buying by central banks is running at above 1,000 tonnes per annum and is unlikely to abate in the next few months. Also, the inflation is still running higher than what the US Federal Reserve expects, traders continue to remain bullish on gold,” said Sandip Raichura, Chief Executive Officer of Retail Broking and Distribution & Director at PL Capital.

Looking ahead, Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, noted that the minutes from the upcoming US Fed FOMC meeting on Wednesday could offer “deeper insights into the central bank's monetary policy stance and the trajectory for bullion prices in the near term.”

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