Chennai Gold Prices Ease As Investors Await Global Cues

Gold prices in Chennai edged lower on Monday, tracking a broader national decline influenced by international market shifts and domestic currency factors. The city’s 22-karat gold was priced at Rs 9,375 per gram, while 24-karat (999) gold traded at Rs 10,228 per gram.

India’s reliance on imports for the bulk of its gold needs means that price movements abroad quickly translate into changes at home. Recycled gold continues to represent a minor portion of supply, leaving domestic markets such as Chennai particularly exposed to fluctuations in the rupee-dollar exchange rate.

Impact of Currency Movements and Taxes

Gold is universally priced in US dollars, making the Indian currency’s performance a key determinant of local rates. Additional influences include import duties, GST, and state-specific levies, which can result in small variations in prices between cities.

Although gold has long been regarded as a stable store of value, its market price can swing sharply in response to changes in global bond yields, economic growth forecasts, and policy decisions by major central banks. Recent softening has been attributed to a stronger US dollar and expectations that US interest rate cuts may be delayed.

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Nationwide Price Trends Reflect the Same Pattern

Across India, prices followed a similar path. Delhi and Lucknow both recorded Rs 9,390 per gram for 22-karat gold and Rs 10,243 for 24-karat. Mumbai, Bengaluru, and Kolkata matched Chennai’s figures. Slightly higher rates of Rs 9,380 per gram for 22-karat gold were noted in Ahmedabad and Indore.

Jewellers in Chennai believe that while the fall may spur short-term purchases, larger price swings will depend on upcoming international economic data and policy announcements. With the festive season approaching, any sustained dip could boost retail demand in the region.

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