Gold prices in Chennai remained largely unchanged on Wednesday, mirroring the broader global sentiment of cautious trading as investors awaited the outcome of the US Federal Reserve’s monetary policy decision later in the day. On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped Rs 176, or 0.15 per cent, to Rs 1,19,470 per 10 grams in a turnover of 13,116 lots. The fall marked the fourth consecutive session of losses for the yellow metal.
Silver, however, found renewed interest among investors, rebounding on value buying. Silver futures for December delivery climbed Rs 451, or 0.31 per cent, to Rs 1,44,793 per kilogram in 20,331 lots.
Muted Global Trends Keep Bullion in Check
Globally, Comex gold futures for December delivery traded $15.9, or 0.4 per cent, lower at $3,967.2 per ounce, extending their four-day losing streak. Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, “Gold prices traded around USD 3,970 per ounce on Wednesday, as the attention turned to the Federal Reserve’s expected rate cut later in the day.” He noted that traders were also keeping an eye on Fed Chair Jerome Powell’s post-meeting remarks for hints on the future direction of monetary policy, with markets already factoring in another rate reduction in December.
Comex silver futures also advanced by 0.32 per cent to $47.47 an ounce. Market participants continued to monitor developments in the US-China trade negotiations, with reports suggesting that Presidents Donald Trump and Xi Jinping are close to finalising a framework deal to halt further tariff hikes and ease restrictions on rare earth exports.
Gold Prices in Chennai Hold Firm
In Chennai, 24-karat gold (999 purity) was priced at Rs 12,229 per gram, while 22-karat gold traded at Rs 11,210 per gram. Despite recent declines, the precious metal remains on track for its third monthly gain and has risen nearly 50 per cent this year. Trivedi attributed this resilience to a mix of global economic uncertainty, robust central bank buying, and ongoing concerns about currency debasement.
India, the world’s second-largest consumer of gold after China, continues to depend heavily on imports to meet domestic demand. Although initiatives promoting gold recycling have grown, the share of recycled metal in the total supply remains limited, underscoring India’s reliance on overseas inflows.
Since gold is traded globally in US dollars, movements in the rupee directly influence domestic prices. A weaker rupee pushes up import costs, while a stronger one offers some relief. Despite these fluctuations, gold in Chennai continues to attract investors and households seeking stability amid volatile global market conditions.
