After a volatile week, gold prices showed signs of stabilisation on Friday, offering a mild recovery from recent declines. In Chennai, the yellow metal traded at Rs 12,589 per gram for 24-karat gold and Rs 11,540 per gram for 22-karat gold. The modest rebound followed a week of mixed trends influenced by global economic indicators, currency fluctuations, and investor sentiment.
Gold Prices Recover Amid Global Uncertainty
India remains the world’s second-largest consumer of gold after China, with domestic demand heavily reliant on imports. Recycled gold continues to account for only a minor share of the total supply. Because the metal is priced internationally in US dollars, any movement in the rupee-dollar exchange rate directly affects the cost of gold in India.
Locally, gold is sold at a premium over global prices due to a combination of import duties, GST, and state-level taxes, which increase the overall retail price for consumers. As a result, Indian buyers often face higher prices for both bullion and jewellery compared to international benchmarks.
Globally, gold’s performance remains shaped by fluctuations in bond yields, central bank decisions, and investor risk appetite. The precious metal continues to serve as a preferred safe-haven asset during times of economic instability and geopolitical tension.
Chennai Gold Market Reflects Broader Trends
Chennai, a major hub for gold trading and jewellery manufacturing, mirrors the broader national trend. The recent price recovery follows easing concerns over aggressive monetary tightening by global central banks and expectations of future interest rate adjustments. Lower yields and a softer US dollar have also provided support to bullion prices.
Across other cities, gold rates varied slightly. In Delhi, 24-karat gold was priced at Rs 12,546 per gram, while in Mumbai and Bengaluru, the rate hovered around the same level. Kolkata reported prices at Rs 12,546 for 24-karat gold and Rs 11,505 for 22-karat. In Lucknow, the 24-karat rate stood at Rs 12,561 per gram.
Despite recent fluctuations, gold remains a key part of Indian investment portfolios, offering long-term value and security amid global market uncertainty.
