Gold price hits record high, rises to Rs 7,000/gram ahead of wedding season in Chennai

CHENNAI: Right before of the peak wedding season, the price of 22-carat gold has touched a historic high of Rs 7,000 per gram and Rs 56,000 per sovereign in the Chennai market.

This is sure to hit families planning weddings in the coming months, with 11 auspicious days in November, 5 in December, 11 in January and 14 in February.Chennai market

"The increase in gold price at this time has left us in a helpless situation. The only choice is to reduce the number of jewellery when the rate increases and adjust with other jewellery instead of gold," said Reba Simon, who was planning to purchase gold for a wedding in her family.

However, as gold is associated with goddess Lakshmi and is considered to bring luck and happiness to the couple who are getting married, it is an unavoidable element of Indian weddings regardless of the religion. What that means is, the demand will continue despite the spike and record highs.

Blaming the spike on the rate cut by the US fed, Jayantilal Challani, president, Jewellers and Diamond Traders Association of Madras, said Tamil Nadu accounts for about 30-35 per cent of gold consumption in the country. “Whenever the rate spikes, people wait for a few days for it to come down but the demand remains among the consumers,” he said.

Echoing him, Ramesh Kalyanaraman, executive director, of Kalyan Jewellers, said after the customs duty cut announced the budget and the subsequent decline in gold prices, the chain has recorded a substantial increase in footfall at its showrooms across India.

“This surge indicates positive consumer sentiment towards gold, which continues to be India's preferred investment option. We are also witnessing renewed interest from millennial and Gen-Z consumers eager to invest in the yellow metal. This has accelerated demand for traditional temple jewellery, as well as polki (uncut diamond) and uncut pieces,” he added.

Gold price per gram in September for the past 10 years

2014 - Rs 2,396

2015 - Rs 2,405

2016 - Rs 2,837

2017 - Rs 2,736

2018 - Rs 2,768

2019 - Rs 3,503

2020 - Rs 4,557

2021 - Rs 4,246

2022 - Rs 4,391

2023 - Rs 5,160

2024 - Rs 7,089 (on September 24)

(Source: World Gold Council)