As Diwali celebrations unfold in India, gold prices in Chennai have surged to record levels. Domestic demand, boosted by the festive season, global market trends, and geopolitical factors, has fueled rapid price increases.
On October 31, the price of 24-carat gold in Chennai rose by Rs. 170, reaching Rs. 81,330 per 10 grams. Meanwhile, 22-carat gold climbed by Rs. 150 to Rs. 74,550 per 10 grams, and 18-carat gold saw an increase of Rs. 100, now priced at Rs. 61,400 per 10 grams.
Gold and silver are traditionally in high demand during Diwali and Dhanteras, driving prices up. Over the last ten days, gold prices in Chennai have increased by more than 2% as Indian buyers continue to add to their holdings. Silver has similarly experienced a surge in prices, as demand remains strong through the peak of the festive season. Globally, gold has maintained a bullish trend amid market anticipation of the upcoming U.S. presidential election on November 5. Investors are also focused on the release of the U.S. Personal Consumption Expenditures (PCE) inflation data, which could influence the Federal Reserve’s approach to interest rates, potentially impacting gold demand.
Silver rates in Chennai saw a slight gain, rising by Rs. 100 per kilogram to Rs. 1,09,100, with the 100g price also increasing by Rs. 10 to Rs. 10,910. This marks the third consecutive gain for silver prices this week.
On the Multi Commodity Exchange (MCX), gold and silver futures slightly declined after reaching recent highs. Gold futures, maturing on December 5, fell by 0.17%, bringing the price to Rs. 79,600, while silver futures declined by 0.80%, settling at Rs. 96,962.
In the global market, spot gold was stable at $2,786.89 per ounce as of 0254 GMT, following a peak of $2,790.15. Gold has gained 6% this month. Spot silver dropped 0.3% to $33.68 per ounce, and U.S. gold futures eased by 0.1% to $2,797.80.
Related topics:
- Gold (XAU) Daily Forecast: Double-Top at $2,790 May Limit Further Gains
- Gold Prices Surge on Diwali; Nifty 50 Faces Significant Decline
- Reserve Bank of India Repatriates 102 Metric Tonnes of Gold Ahead of Diwali
