Chennai: gold prices have surged once again in the city, with ornamental gold witnessing a significant increase of ₹1,800 per sovereign (8 grams). Following this rise, one sovereign of gold is now being sold at ₹1,26,200 in the retail market.

This latest hike comes just a day after a dramatic spike of ₹5,200 per sovereign, indicating sustained volatility in bullion prices. The back-to-back increases have caught the attention of both consumers and traders, as gold continues its upward trajectory.

Steep Increase in Per Gram Rate

In addition to the sovereign rate, the price of gold per gram has also increased by ₹225. A single gram of gold is currently priced at ₹15,775 in Chennai’s retail jewellery market. The steady rise in the per-gram rate reflects strong market momentum and ongoing fluctuations influenced by broader economic conditions.

Such continuous increases have created concerns among families planning weddings and festive purchases, as gold remains an integral part of traditional celebrations and investments.

Silver Prices Also Edge Higher

Alongside gold, silver prices have also recorded a rise in Chennai’s retail trade. The price of silver has increased by ₹5 per gram. Though the rise is comparatively modest, it signals a general upward movement in precious metal prices.

Retail traders note that silver demand often follows gold trends, particularly among investors seeking relatively affordable alternatives in the bullion market.

Market Factors Behind the Surge

Industry experts attribute the consistent rise in gold prices to several factors, including international market trends, fluctuations in currency exchange rates, and global economic uncertainties. gold is widely regarded as a safe-haven asset, and increased investor demand during uncertain times often drives prices higher.

Additionally, changes in import duties, supply constraints, and global geopolitical developments can also influence domestic gold rates.

Impact on Buyers and Traders

The rapid increase over consecutive days has affected purchasing decisions. While investors may view the rally as an opportunity for gains, retail buyers are adopting a cautious approach due to the elevated prices.

Jewellers in chennai are closely monitoring the trend, as continued volatility could impact overall sales volumes. If the upward movement persists, it may further influence consumer sentiment and buying patterns in the coming weeks.

 

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