Gold prices in India witnessed a slight upward movement on Friday, with Chennai aligning with the nationwide trend. In the southern city, 22-karat gold was priced at Rs 9,406 per gram, while 24-karat gold stood at Rs 10,261 per gram.
India remains heavily reliant on imported bullion, with recycled gold contributing only a limited share of supply. Domestic gold prices are directly affected by international benchmarks, as the metal is traded in US dollars. Any depreciation in the rupee against the dollar tends to make imports costlier, pushing up local prices.
Global Sentiment Influencing Domestic Demand
Analysts said that gold’s marginal rise on Friday can be attributed to a blend of domestic currency movements and international market sentiment. Global factors such as US bond yields, expectations of central bank decisions, and investor appetite for safe-haven assets all weigh on gold prices.
In addition to currency fluctuations, local charges including import duties, GST, and state levies determine the final price paid by buyers in Chennai. With the festive season on the horizon, jewellers anticipate stable demand despite the modest price volatility.
Gold as Cultural and Economic Mainstay in Chennai
Chennai, with its deep-rooted cultural connection to gold, remains one of India’s strongest bullion markets. Families traditionally view gold not just as an adornment but also as a financial safeguard during times of uncertainty. This dual role ensures the metal’s continued relevance, particularly when inflationary pressures or global risks loom large.
Elsewhere, other Indian cities mirrored similar trends. In Delhi, the price for 22-karat gold stood at Rs 9,421 per gram, while 24-karat touched Rs 10,276. Mumbai, Hyderabad, and Bengaluru were quoted at Rs 9,406 for 22-karat and Rs 10,261 for 24-karat.
Amid fluctuating economic indicators, gold continues to act as a reliable hedge. For Chennai’s buyers, the current rates offer a balance between affordability and security, making the yellow metal an enduring choice for investment and cultural occasions.
