Gold costs nearly Rs 8,000/gm in Chennai

CHENNAI: One gram of the yellow metal cost Rs 8,000 on Tuesday, setting a new record in the gold market during the wedding season.

The rate keeps fluctuating and sellers anticipate a further increase in the near future.

On February 12 last year, one gram of gold was Rs 5,830 (Rs 46,640 per sovereign).

Fast forward to the same date this year, it has increased by Rs 2,110/gram.

On Wednesday, one gram of gold was Rs 7,940 (Rs 63,520/sovereign).

“The gold rate, which was expected to cross Rs 8,000/gram by end of March, has already crossed the margin even before mid-February. Fluctuations in gold price would continue for another two weeks, and the price would spike again. We’re expecting it to cross Rs 10,000/gram by end of this year,” said Gold Guru Santhakumar, secretary, Madras Jewellers and Diamond Traders Association.

In 40 days, the rate has increased by Rs 910/gram. which is a record.

“The increase in gold price is due to the changes in the US market. And, earlier, it was the war between Russia and Ukraine, and Israel-Palestine,” he added.

“In the past 2 months, the price has increased as it’s muhurtham time, so people buy more gold. The State government should take measures to maintain the price,” said J Jayakumar, secretary, TN Progressive Consumer Centre.

Though geo-political factors across the world determine gold price, the rate has increased only in India.

“Gold, share market and oil prices are interdependent on each other. The share market has currently gone down wherein the gold price has risen here,” pointed out M Somasundaram, a consumer activist.

“As it’s wedding season, consumers exchange old gold for new ones instead of buying it with cash.”