Gold prices fell in Chennai on Monday, extending weakness seen in the international market. In the city, 22-karat gold is retailing at Rs 9,970 per gram, while 24-karat gold is priced at Rs 10,877 per gram. The correction comes amid global headwinds and rupee fluctuations, which continue to dictate India’s bullion trends.
India, after China, remains the second-largest gold-consuming nation, with the bulk of its demand met through imports. Since global bullion trade is dollar-denominated, even modest shifts in the rupee-dollar equation create sharp variations in domestic retail prices. For consumers in Chennai, taxes such as customs duty, GST, and state-level levies also add to the final retail tag.
Domestic Demand and Global Cues Intersect
Although the fall in prices may discourage some short-term traders, gold retains an important emotional and cultural place in Tamil Nadu. Traditionally purchased during weddings, religious ceremonies, and festive occasions, demand in Chennai often sees seasonal spikes. Analysts say such dips can spark buying interest, as long-term investors view gold as both a store of value and a hedge against inflation.
Internationally, gold’s direction is shaped by broader financial market trends. Bond yields, policy decisions by major central banks, and overall investor confidence have all played a part in Monday’s downward adjustment. Reports suggest that investors remain cautious about future interest rate moves in the US, which directly impact global bullion demand.
How Chennai Prices Stack Up Against Other Cities
On a comparative basis, Chennai’s 22-karat gold at Rs 9,970 per gram is higher than in Kolkata, Mumbai, Pune, Hyderabad, and Bengaluru, where the rate stood at Rs 9,935. For 24-karat gold, Chennai’s price of Rs 10,877 per gram is also above the Rs 10,838 rate seen in these cities.
In northern markets like Delhi and Lucknow, prices were slightly higher still, with 22-karat at Rs 9,950 and 24-karat at Rs 10,853. Meanwhile, Ahmedabad and Indore recorded near-identical rates, with 24-karat gold just above Rs 10,841.
For Chennai buyers, today’s moderation in prices reflects global realities but also presents a possible entry point for investors looking to diversify their portfolios. As uncertainties persist in global trade and monetary policy, gold’s safe-haven appeal is unlikely to diminish in the near term.
