Gold prices in Chennai climbed on Monday, mirroring the broader national trend as investors sought safe-haven assets amid persistent economic uncertainties. The price for 24-karat gold in the city stood at Rs 12,382 per gram, while 22-karat gold was priced at Rs 11,350 per gram.
India, the world’s second-largest gold consumer after China, continues to rely heavily on imports to satisfy its appetite for the yellow metal. Although initiatives to boost gold recycling and formal collection networks are underway, recycled gold still makes up a minor portion of overall supply. This underlines India’s dependence on global inflows and its sensitivity to international market movements.
Because gold is traded globally in US dollars, any fluctuation in the rupee’s exchange rate directly affects local prices. A depreciating rupee typically makes imports costlier, pushing domestic gold prices higher. Conversely, a stronger rupee can help stabilise or even temper price gains for Indian consumers.
On the global front, bullion prices are shaped by shifts in bond yields, central bank policies, and investor sentiment. The precious metal remains a preferred hedge during periods of inflation, market volatility, or geopolitical tension, reinforcing its appeal as both a store of wealth and a risk diversifier.
Steady Domestic Demand Supports Sentiment
Despite periodic fluctuations, demand for gold in Chennai remains strong, supported by weddings, festive purchases, and long-term investment interest. Analysts say local buyers continue to view gold as a stable investment option amid uncertain equity and currency markets.
Across India, gold prices varied slightly from city to city on Monday. In Delhi, 24-karat gold was priced at Rs 12,332 per gram, while in Kolkata and Mumbai, it was available at Rs 12,317 per gram. In Ahmedabad and Indore, rates hovered around Rs 12,322 per gram.
Market experts note that the outlook for gold remains constructive. With ongoing inflationary concerns, changing global interest rate expectations, and fluctuating oil prices, the yellow metal continues to attract steady investor interest both globally and domestically.
