Gold prices in Chennai surged on Tuesday, mirroring a nationwide rally that drove the yellow metal to fresh record highs. Futures on the Multi Commodity Exchange (MCX) rose sharply, with investors turning to safe-haven assets amid heightened global economic risks and growing speculation of interest rate cuts by the US Federal Reserve.
On the MCX, gold futures for December delivery advanced Rs 1,217 or 1.04 per cent, scaling an unprecedented Rs 1,17,561 per 10 grams. Likewise, the February 2026 contract jumped Rs 1,314 or 1.12 per cent to settle at an all-time high of Rs 1,18,788 per 10 grams. Silver too shone brightly, with December futures gaining Rs 1,101 or 0.77 per cent to Rs 1,44,200 per kilogram, while the March 2026 contract climbed Rs 1,127 or 0.78 per cent to touch Rs 1,45,858 per kg.
Safe-Haven Demand Boosts Gold and Silver
Market experts say the upward momentum in precious metals is being fuelled by safe-haven demand. “Gold and silver extended their bullish momentum as safe-haven demand surged amid concerns over a potential US government shutdown, and additional tariff measures, coupled with expectations of further Fed rate cuts, are driving precious metal prices higher,” observed Rahul Kalantri, Vice-President of Commodities at Mehta Equities Ltd.
Globally, bullion prices continued their record-breaking run. Gold futures for December rose more than 1 per cent to a fresh peak of $3,895.22 per ounce. Silver also edged higher to $47.41 per ounce. According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, “Gold prices rose to a fresh record high of USD 3,895 per ounce, heading for their biggest monthly gain in 14 years, as investors rushed to safe-haven assets amid mounting concerns over a looming US government shutdown.”
So far in September, gold futures have surged more than 11 per cent. The demand has also been reflected in exchange-traded funds, with inflows of $10.5 billion during September alone, taking total inflows this year to $50 billion, according to Augmont’s Head of Research, Renisha Chainani.
Gold Rate in Chennai Today
In Chennai, the retail gold price stood at Rs 10,860 per gram for 22-karat and Rs 11,848 per gram for 24-karat (999 purity) on Tuesday. This surge comes at a time when households in the city are preparing for festive season purchases, making the rally particularly significant.
Meanwhile, political developments in the US added further volatility. Talks between President Donald Trump and congressional leaders failed to deliver a deal on temporary funding, raising fears of a shutdown starting Wednesday. If the impasse continues, it could even delay the release of vital economic indicators, including September’s jobs data. In addition, new US tariffs on heavy trucks, patented medicines, and other goods are set to come into force midweek.
“Last week, the US macroeconomic data reinforced bets that the Federal Reserve could deliver additional rate cuts at its two remaining meetings this year,” Trivedi noted.
At a time when oil prices remain subdued and global growth fears loom large, Chennai’s gold buyers are witnessing record-high rates that highlight the city’s traditional reliance on gold as both an investment and a cultural staple.
