Chennai’s bullion market mirrored the global surge in precious metals on Tuesday, with gold touching new lifetime highs in the domestic futures trade. October gold futures on the Multi Commodity Exchange (MCX) gained Rs 520 to reach Rs 1,12,750 per 10 grams, while the December contract advanced by Rs 530 to Rs 1,13,750 per 10 grams, both hitting record levels.
Silver continued its climb as well, with December futures adding Rs 461 to Rs 1,34,016 per kilogram. March 2025 silver contracts rose Rs 508 to Rs 1,35,397 per kg, pushing the white metal to nearly 15-year highs.
Fed Rate Cut, Dollar Weakness and Geopolitics Add Momentum
According to analysts, multiple factors are sustaining this rally. Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd, commented, “The Fed’s 25 basis points interest rate cut and prospects of more easing by year-end boosted sentiment. Gold surged to lifetime highs while silver reached its strongest level in nearly 15 years. A subdued dollar index and a weaker rupee provided further impetus to domestic bullion prices. Persistent central bank purchases, strong ETF inflows, and safe-haven buying further fuelled the precious metals’ strength.”
Globally, December gold futures soared to $3,794.82 per ounce, underscoring the scale of the rally. Silver futures, meanwhile, slipped marginally to $44.19 per ounce. Reliance Securities’ Jigar Trivedi noted that markets are already pricing in almost two additional rate cuts this year as US job growth slows. He added that Jerome Powell’s remarks later today and the upcoming PCE inflation data will provide critical cues for future monetary policy.
Geopolitical risks, including the prolonged Russia-Ukraine conflict and Middle East tensions, have also bolstered safe-haven demand. Despite elevated prices, corrections have been shallow, suggesting strong investor confidence in bullion as a hedge.
Gold Rate in Chennai Today
In Chennai, 22-karat gold prices are currently at Rs 10,500 per gram, while 24-karat gold (999 purity) stands at Rs 11,455 per gram. The festive season is likely to keep demand steady, though the sharp rise in prices may weigh on jewellery buying in the short term.
With global markets on edge and central banks stepping up purchases, Chennai investors are viewing gold as both a store of value and a shield against market volatility. The trajectory of prices will now hinge on upcoming US economic data and further signals from the Federal Reserve.
