Gold prices were steady in Chennai on Wednesday, reflecting nationwide trends. The city recorded Rs 9,805 per gram for 22-karat gold and Rs 10,697 per gram for 24-karat gold, mirroring levels seen in Bengaluru, Hyderabad, Pune, and Mumbai.
India, which trails only China in global gold consumption, imports the majority of its supply, with recycled gold making up only a small portion. This dependency keeps domestic rates sensitive to global shifts in demand, supply, and currency valuations.
Currency Fluctuations and Global Policies at Play
Since international trade in gold is conducted in US dollars, changes in the rupee-dollar exchange rate are a direct driver of Indian market prices. Additional influences include import duties, GST, and other levies applicable at state level, all of which alter the retail value in cities like Chennai.
Analysts emphasise that gold’s performance is dictated by global factors such as bond yields, central bank decisions, and broader investor sentiment. As inflation concerns persist and economic growth signals remain mixed worldwide, the metal’s safe-haven status has again come into focus.
Gold’s Dual Role: Tradition and Investment
In Chennai, as in other parts of India, gold is not merely an asset but an integral part of culture and tradition. Weddings, festivals, and religious observances continue to sustain steady demand. At the same time, investors are increasingly turning to the yellow metal as a hedge against inflation and financial market volatility.
A comparison across major cities shows similar pricing. Delhi currently quotes Rs 9,820 per gram for 22-karat and Rs 10,712 per gram for 24-karat gold. Kolkata stands at Rs 9,805 and Rs 10,697, respectively, while Ahmedabad and Indore reflect slightly higher rates of Rs 9,810 for 22-karat and Rs 10,702 for 24-karat gold.
With gold rates in Chennai and elsewhere reflecting resilience, the metal’s appeal appears undiminished amid ongoing global uncertainties. For local buyers, Wednesday’s prices highlight the dual nature of gold – as both a cultural mainstay and a financial safeguard.
