Gold prices surge by Rs 2,000 in Chennai, sovereign crosses Rs 74K on April 22

CHENNAI: The price of gold witnessed a sharp escalation in the city on Tuesday, with 22-carat gold soaring to an all-time high of Rs 9,290 per gram — amounting to Rs 74,320 per sovereign (8 grams).

This marks a steep rise of Rs 2,200 per sovereign compared to the previous day's rate.

Simultaneously, the price of 24-carat gold touched Rs 10,135 per gram, reflecting the ongoing rally in precious metals driven by global economic and geopolitical uncertainties.

Gold prices have experienced considerable fluctuations in recent months.

On February 5, gold was priced at Rs 63,240 per sovereign, briefly rising to Rs 64,000 before dipping to Rs 63,520 by February 12.

A sharp spike followed on March 14, when the rate jumped to Rs 66,400 — a single-day rise of Rs 1,440.

Financial analysts attributed the current surge to heightened investor demand for safe-haven assets amid geopolitical tensions, inflationary pressures, and slowing global growth.

"The prevailing volatility in international markets has led to a renewed preference for gold as a stable store of value," said Ramesh Kumar, senior economist.

The retail response has been mixed, with some buyers exercising caution while others continue to invest ahead of expected further hikes.

"Despite high rates, we're seeing steady demand driven by the upcoming wedding season and Akshaya Tritiya," said Arvind Mehta, proprietor of Mehta Jewellers.

Akshaya Tritiya, which is considered the most auspicious day to buy gold, falls on April 30.

Santhakumar, secretary of the Madras Jewellers and Diamond Traders Association, predicted continued bullish trends.

"Gold prices could reach Rs 80,000 per sovereign during Akshaya Tritiya and may even cross Rs 1 lakh by the end of the year," he said.

Silver prices have remained stable at Rs 111 per gram.

Market observers suggested that the bullion market may remain volatile in the coming months, urging consumers to monitor trends closely.

Meanwhile, gold prices surged by Rs 1,800 to zoom past the crucial Rs 1 lakh-mark for 10 grams in the national capital on Tuesday amid buying rush by local jewellers and stockists in anticipation of increased demand during Akshaya Tritiya and wedding season.

According to the All India Sarafa Association, the precious metal of 99.9% purity climbed Rs 1,800 to hit the lifetime peak of Rs 1,01,600 per 10 grams from Monday's closing level of Rs 99,800 per 10 grams.