Gold prices in Chennai and Hyderabad saw a significant drop on Monday, April 7, 2025, as geopolitical tensions, particularly in the Middle East and between Russia and Ukraine, along with the impact of a global trade war, caused a downward shift in precious metal prices. The announcement of new tariff rates by US President Donald Trump, which were more aggressive than expected, further pressured gold prices, leading to a decrease in the global gold price below $3,050 per ounce.
In Chennai and Hyderabad, the price of 24-carat gold stood at Rs 9,038 per gram, while 22-carat gold was priced at Rs 8,285 per gram. The prices for gold saw a significant drop, with the price of 22-carat gold for 10 grams falling to Rs 82,850, a reduction of Rs 250 from the previous price of Rs 83,100. Similarly, the price of 22-carat gold for 100 grams decreased by Rs 2,500, dropping from Rs 8,31,000 to Rs 8,28,500.
The price of 24-carat gold also saw a reduction, with the cost of 10 grams falling by Rs 280 to Rs 90,380 from Rs 90,660 on Saturday. The price of 100 grams of 24-carat gold decreased by Rs 2,800, now priced at Rs 9,03,800. For 18-carat gold, the price for 100 grams dropped by Rs 1,500, now priced at Rs 6,83,000 compared to Rs 6,84,500 earlier.
Meanwhile, silver prices remained unchanged, holding steady at Rs 1,03,000 per kilogram or Rs 103 per gram in both cities.
Gold and Silver Market Outlook
While gold and silver prices have shown some recovery in international markets, experts predict that domestic prices may continue to face pressure due to the ongoing trade war and global economic uncertainty. Analysts from Nirmal Bang Securities Pvt. Ltd. expect slight declines in precious metal prices in India, as the prospects for the global economy are battered by Trump’s tariff expansion.
Spot gold is predicted to find support near $2,960 per ounce, with further volatility expected as global trade tensions continue to escalate. Some analysts suggest that gold could face resistance near $3,060 but could also see a downward trend towards $2,950.
For MCX Gold, analysts forecast support near ₹86,500, with potential for a rebound toward ₹89,500. On the other hand, MCX Silver is expected to find support near ₹84,000, with a potential rebound to ₹89,500. If silver prices fall below ₹84,000, they could weaken further, possibly reaching ₹82,000. The rising gold-silver ratio after COVID-19 indicates silver’s underperformance compared to gold.
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