Gold prices in Chennai have seen an upward trend today, driven by increased demand ahead of Christmas celebrations. The price of 22-carat gold has risen to Rs. 71,000 per 10 grams, marking an increase of Rs. 100. Meanwhile, the rate for 24-carat gold has climbed to Rs. 77,450 per 10 grams, also rising by Rs. 100. Similarly, 18-carat gold is now priced at Rs. 58,650, up by Rs. 80 per 10 grams.
The festive surge in demand has contributed to these price hikes, which were also reflected in larger weight quantities. In Chennai, 100 grams of 24-carat gold is now priced at Rs. 7,74,500, while 100 grams of 22-carat gold stands at Rs. 7,10,000.
In tandem with gold, silver prices in Chennai have risen by Rs. 100 per kilogram, bringing the current rate to Rs. 99,000. The price for 100 grams of silver has increased by Rs. 10, now priced at Rs. 9,000.
Gold Price Volatility in Chennai Over the Past Week
Over the past five days, gold prices in Chennai have shown significant fluctuations, with both gains and losses recorded. These movements come as the global gold market remains closed for the Christmas holiday, with trading set to resume tomorrow. As of yesterday, spot gold prices were pegged at USD 2,616.45 per ounce, marking a marginal 0.03% increase. However, spot silver saw a decline, closing at USD 29.62, down by 0.20%.
Global Factors Impacting Gold Prices
Several global factors are influencing the price of gold. Despite a continued rise in the US Dollar Index, which has kept gold prices under pressure, spot gold has remained steady near USD 2,610 per ounce. The Federal Reserve’s recent shift towards fewer interest rate cuts in 2025 has diminished gold’s appeal as a hedge against lower interest rates. This has contributed to the current stability in gold prices rather than a significant rally.
Additionally, rising US Treasury yields have further challenged gold, weighing on its prices. Market participants are now awaiting key economic data, including December’s Initial Jobless Claims and Nonfarm Payrolls, expected in early January. These reports could provide critical insights into the US labor market and potentially exert further pressure on gold prices.
Silver Prices Reflect Similar Trends
Silver has mirrored gold’s upward trend, with prices in Chennai rising as the festive season bolstered demand. As the year draws to a close, silver prices are expected to fluctuate in tandem with gold, influenced by broader economic indicators and shifts in global markets.
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