Gold continues upward trend in Chennai amid global market fluctuations
In the past one week, gold prices saw a huge fluctuation in the city and other parts of the country, with the past two days seeing the price heading further north.;
CHENNAI: Gold continued its upward trend on Thursday by moving from Rs 8,290 to Rs 8,560 per gram, marking a single-day hike of Rs 270 in Chennai. Similarly, the rate per sovereign rose from Rs 66,320 to Rs 68,480, recording an increase of Rs 2,160. Gold sellers say the rate per sovereign in hand with the minimum making charges would be at least Rs 74,000.
In the past one week, gold prices saw a huge fluctuation in the city and other parts of the country, with the past two days seeing the price heading further north.
"The fluctuation in prices is due to the events in the US share markets. A market strategist had predicted a 38% decrease in the gold rate, which indeed saw a fall in the price. The rate has increased now. There will be more fluctuations for another one week and the increase will reflect in Chennai markets as well," said Gold Guru Santhakumar, secretary of Madras Jewellers and Diamond Traders Association.
Amarendran Vummidi, managing partner, Vummidi Bangaru Jewellers, Chennai, said: "The recent fall in gold prices is due to global market movements – primarily a stronger dollar, easing geopolitical fears, and speculations around interest rate cuts. While short-term fluctuations are expected, gold's long-term value remains deeply rooted in Indian sentiment and tradition. With Akshaya Tritiya and the wedding season approaching, we expect the demand to pick up in the coming weeks."
"In the current scenario, even the government supports gold bonds. When the rate increases, customers who invested in bonds convert it to physical gold. There is no supply of physical gold according to the demand and is one of the reasons why the gold price increases," said T Sadagopan, a consumer activist.