Gold Price Today In Chennai: Stable Demand, Currency Fluctuations Keep Rates High

Gold prices in Chennai witnessed a fresh surge on Monday, with the rates hitting Rs 9,295 per gram for 22-karat gold and Rs 10,140 per gram for 24-karat gold. This uptick aligns with broader national trends, where bullion prices remain sensitive to global developments and the rupee’s performance against the US dollar.

India, the second-largest consumer of gold after China, sources the majority of its gold through imports. With recycled gold contributing minimally, local prices are directly affected by international gold benchmarks set in US dollars. Any weakening of the rupee automatically raises the cost of gold for Indian buyers.

Furthermore, a mix of central and state-level taxes — including import duties and GST — add to the final purchase price in cities like Chennai, where demand is steady throughout the year, particularly during festivals and wedding seasons.

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Investment Sentiment Strong Despite Market Volatility

Gold continues to be a popular asset class for Indian households and investors. Traditionally viewed as a safe-haven during financial turbulence or inflationary cycles, gold’s demand in Chennai remains resilient. The current rise in prices is also being supported by global indicators such as changes in bond yields and broader economic uncertainty.

Across India, gold prices have remained elevated over the past few weeks. For instance, Delhi and Lucknow recorded slightly higher prices at Rs 9,310 per gram (22K) and Rs 10,155 (24K), while cities like Ahmedabad and Indore stood at Rs 9,300 and Rs 10,145 respectively.

The stable demand for gold in southern cities, particularly Chennai, often acts as a bellwether for national consumption trends. As macroeconomic conditions continue to fluctuate, gold retains its position as a dependable store of value.

With the combined impact of global signals and internal levies, Indian gold prices are likely to stay on a volatile path in the short term. For now, Chennai's gold buyers will have to account for high rates, albeit in exchange for financial security that gold continues to offer.

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