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Gold Rate in Chennai
Gold is a hugely important commodity in Chennai, the capital of South-Indian state Tamil Nadu. Chennai ranks above all other cities and towns in India when it comes to gold trade. This cosmopolitan city boasts the maximum number of sales and purchases of gold in India.
In keeping with the rest of the country, the people of Chennai purchase gold mainly in the form of jewelry. Needless to say, there are a number of jewelry establishments spread in and around the city to meet this demand. Gold rates or prices are updated on a daily basis and can be obtained from those dealing in gold or online via many financial sites.
India imports most of its gold requirements from abroad. Chennai which doesn’t have any significant gold production also contributes to the country’s need to substantiate gold demand through imports. Even though gold is bought as jewelry, it is done for reasons beyond ornamentation. Such purchases form a part of many buyers’ investment portfolio.
Trend of Gold Rate in Chennai for March 2017 (rates per gram for 24karat gold)
March 2017 - Week 1 (1st - 4th):
- In Chennai, there was a similar pattern with regards to gold rates.
- The 1st saw gold trading at Rs.2,994 per gram which then decreased to Rs.2,992 per gram.
- On 3rd, gold prices saw quite a significant drop to reach Rs.2,961 per gram - a decrease of Rs.33 per gram.
- The week ended with the yellow metal trading at Rs.2,972 per gram, thanks to an increase in demand.
March 2017 - Week 2 (5th - 11th):
- Chennai saw a gold rate trend that was similar to the usual rate in India.
- The week began on 5th with gold priced at Rs.2,972 per gram which went down to Rs.2,971 per gram.
- On 7th, gold rates slipped up by Rs.27 to reach Rs.2944 per gram and went down again to Rs.2,931 per gram on 9th.
- Rates seemed to pick up on 10th to hit Rs.2,951 per gram but went down during the next day to trade at Rs.2,931 per gram.
- Gold prices in Chennai picked up on the last day of the week for the metal to trade at Rs.2,945 per gram.
March 2017 - Week 3 (12th-18th):
- Gold prices in Chennai started on a relatively high note but reduced as the week progressed.
- Gold was priced at Rs.2,947 per gram on 13th March and fell to Rs.2,929 per gram on 14th March owing to a fall in the demand for this precious metal.
- Prices continued to fall, as gold traded at Rs.2,906 per gram on 15th March in spite of global prices rising due to higher demand.
- The rate of gold recovered marginally to trade at Rs.2,931 per gram on 16th March as domestic demand recovered. A drop in the U.S. Dollar led to demand rising as gold traded at Rs.2,935 per gram on 17th March.
- Prices rose for the rest of the week, trading at Rs.2,940 per gram on 18th March.
Trend of Gold Rate in Chennai for February 2017 (rates per gram for 24karat gold)
|February 1st Rate||Rs.2,957 per gram|
|February 28th Rate||Rs.3,003 per gram|
|Highest Rate in February||Rs.3,014 per gram on 25th & 26th February|
|Lowest Rate in February||Rs.2,940 per gram on 3rd February|
February 2017 - Week 1 (1st-4th):
- Compared to the closing rate on January 31st, gold prices increased quite a bit as global news suggested that the yellow metal was performing well for more than a year.
- The week began with gold trading at Rs.2,957 per gram and remained the same during the 2nd as well.
- Prices, however, fell by Rs.17 per gram on 3rd for gold to trade at Rs.2,940 per gram.
- The last day of February week 1 ended with gold trading at Rs.2,944 per gram.
February 2017 - Week 2 (5th-11th)
- The price of gold fluctuated during the week due to market instability and overseas trends.
- Gold traded at Rs.2,944 per gram on 5th February as demand was stable due to strong demand from the industrial sector.
- Gold rose to Rs.2,954 per gram on 6th February as international markets were uncertain following conflicting cues from U.S. markets.
- Prices reached a high of Rs.2,989 per gram on 8th February before falling to Rs.2,946 per gram on 10th February due to wildly fluctuating markets dictating demand.
- Gold traded at Rs.2,964 per gram on 11th February, recording a weekly increase in price of Rs.20 per gram.
February 2017 - Week 3 (12th-18th)
- Gold prices in Chennai dipped as the week began due to decreasing demand but rose as the week ended.
- Gold was priced at Rs.2,964 per gram on 12th February and fell to Rs.2,959 per gram on 13th February due to a slight dip in demand.
- Prices continued to fall, as gold traded at Rs.2,953 per gram on 14th February in spite of global prices rising due to higher demand.
- Gold fell to Rs.2,947 per gram on 15th February as domestic demand was poor, but a drop in the U.S. Dollar led to demand rising as gold traded at Rs.2,980 per gram on 16th February.
- Prices rose for the rest of the week, trading at Rs.2,990 per gram on 18th February, a weekly increase of Rs.26 per gram.
February 2017 - Weeks 4 & 5 (19th-28th)
- The price of gold in Chennai fluctuated in the last two weeks of February due to market conditions.
- Gold traded at Rs.2,980 per gram on 19th February, falling to Rs.2,967 per gram on 21st February due to a fall in domestic demand.
- Prices rose to Rs.2,977 per gram on 22nd February as U.S. markets were bearish over monetary policy under the current administration.
- Prices rose to Rs.3,000 per gram on 24th February, rising to a monthly high of Rs.3,014 per gram on 25th February.
- Prices dipped as the week ended, with gold trading at Rs.3,003 per gram on 28th February.
Trend of Gold Rate in Chennai for January 2017 (rates per gram for 24karat gold)
|January 1st Rate||Rs.2,821 per gram|
|January 31st Rate||Rs.2,942 per gram|
|Highest Rate in January||Rs.2,974 per gram on 24th January|
|Lowest Rate in January||Rs.2,821 per gram on 1st & 2nd January|
January 2017 - Week 1 (1st to 7th)
- Chennai didn’t witness any fluctuations for the week when compared to the trend in most parts of the country.
- As said earlier, new year couldn’t come at a better time for gold prices as they began to soar, albeit at a miniscule level.
- On the first day of the week and year, gold traded at Rs.2,821 per gram.
- Over the 2nd and 3rd, gold prices remained the same, which increased by Rs.7 to trade at Rs.2,828 per gram.
- When the business day began on the 4th, gold prices had increased considerably by Rs.29 to trade at Rs.2,857 per gram.
- The next day on the 5th saw prices again increase to trade at Rs.2,869 per gram.
- At the end of the week on the 7th, gold rates increased further more to trade at Rs.2,872 per gram.
January 2017 - Week 2 (8th to 15th)
- Gold prices in Chennai were unchanged from the previous week, trading at Rs.2,872 per gram on 8th January as demand was stagnant.
- Prices began to rise during the week as domestic demand picked up due to the festive season.
- Gold traded at Rs.2,878 per gram on 9th January as international demand also rose due to market instability.
- The easing of the currency shortage led to greater demand for bullion across industrial and retail sectors, resulting in the gold price rising to Rs.2,914 per gram on 11th January.
- Prices continued to rise during the rest of the week, with gold trading at Rs.2,935 per gram on 12th January before the price dropped to Rs.2,926 per gram on 13th January.
- An increase in demand led to gold prices rising marginally, ending the week at Rs.2,941 per gram on 15th January to record an increase of Rs.45 per gram for the week.
January 2017 - Week 3 (15th to 21st):
- Chennai witnessed a few fluctuations during the third week of January.
- On 15th, at the beginning of the week, gold was seen trading at Rs.2,941 per gram, which later increased to Rs.2,955 per gram on the 16th.
- The 17th saw prices spike up yet again to end the business day at Rs.2,971 per gram.
- Business seemed to slow down on the 18th as prices increased by just Rs.2 to hit Rs.2,971 per gram.
- On 19th, prices fell significantly by Rs.20 which led to gold trading at Rs.2,951 per gram before continuing at the same rate on the 20th.
- The last day of the week saw gold prices get back up slightly for the metal to trade at Rs.2,962 per gram.
January 2017- Weeks 4 & 5 (22nd to 31st)
- The price of gold in Chennai was Rs.2,962 per gram on 22nd January as demand increased due to buying before the Lunar New Year.
- International markets were stable, though the U.S. Dollar fluctuated, which led to an increase in demand for gold, with prices rising to Rs.2,974 per gram on 24th January.
- Prices fell as demand dropped due to reduced demand from Asia, resulting in gold trading at Rs.2,951 per gram on 25th January.
- Prices continued to fall as the week ended, trading at Rs.2,942 per gram on 31st January.
|December 1st Rate||Rs.2,890 per gram|
|December 31st Rate||Rs.2,821 per gram|
|Highest Rate in December||Rs.2,892 per gram on 2nd December|
|Lowest Rate in December||Rs.2,870 per gram on 20th December|
December 2016 - Week 1 (1st to 4th)
- Gold traded at Rs.2,890 per gram on the 1st of December.
- Thanks to the wedding and christmas season, the prices have held steady, without which the rates would have fallen further.
- Prime Minister Narendra Modi’s decision to ban Rs.500 and Rs.1,000 notes still seemed to have an effect on gold sales.
- Gold saw a small fluctuation as it sold for Rs.2892 on the 2nd of December.
- At the end of the week though, gold only traded at Rs.2890, same as it was at the beginning of the week.
December 2016 - Week 2 (5th-11th)
- At the beginning of the week on December 5th, gold trading prices took a massive hit of Rs.21 as the yellow metal was being traded at Rs.2,869 as opposed to Rs.2,890 per gram at the time of closing on December 4th.
- The rest of the week was also subject to much fluctuation as purchases were massively affected due to demonetization.
- Although, trading prices remained at Rs.2,869 per gram on December 6th, it marginally increased to Rs.2,972 on December 7th and decreased considerably to Rs.2,963 per gram on December 8th.
- Gold prices went down again on December 9th to Rs.2,951 per gram, a decrease of Rs.12 from the previous day.
- December 10th and 11th, though, saw the most noticeable slip in prices as they hit a week-low Rs.2,936 per gram.
December 2016 - Week 3 (12th to 18th)
- Chennai, like the rest of India, saw some fluctuations in terms of gold pricing.
- The week began on 12th as gold traded at Rs.2,836 per gram, which held on till the 14th of the month.
- At the start of the 15th, gold prices decreased considerably as it hit Rs.2,800 per gram.
- The 16th saw prices crash further as gold prices hit Rs.2,785 per gram.
- 17th and 18th of the month saw prices increase slightly to Rs.2,791 per gram and remained so till the end of the week.
December 2016 - Week 4 (19th to 25th)
- Much like in the rest of the country, gold prices didn’t witness any major changes in Chennai too.
- The week began with gold trading at Rs.2,790 per gram and slid down by R.2,780 per gram the next day.
- On the 21st, prices increased slightly as the metal traded at Ts.2,782 per gram.
- The 22nd however, saw prices decrease by over Rs.15 as it sold at Rs.2,767 per gram.
- The fourth week of December ended with gold trading at Rs.2,773 per gram.
December 2016 - Week 5 (26th to 31st)
- Gold prices in Chennai reflected nationwide trends, with demand for gold rising.
- Gold was priced at Rs.2,771 per gram in 26th December as investors put their money in the safe haven asset.
- Prices rose to Rs.2,804 per gram on 27th December as demand was on the upswing.
- The rise in price continued as the deadline for deposits of old currency drew near, with gold reaching Rs,2,830 per gram.
- The price fell on the last day of the year as gold traded at Rs.2,821 per gram.
|1st November rate||Rs.3,075 per gram|
|30th November rate||Rs.2,942 per gram|
|Highest rate in November||Rs.3,166 per gram on 9th November|
|Lowest rate in November||Rs.2,932 per gram on 25th November|
November '16 - Week 1 (1st to 6th)
- At the start of the week, gold traded at Rs.3,075 per gram.
- Festive demand coupled with the wedding season led to high demand in the domestic market.
- Gold prices touched Rs.3,119 per gram on 5th and 6th November, the highest for the week.
- With uncertainty looming over the U.S. presidential elections, the dollar lowered.
- The Fed rate hike is possible in December as the U.S. economy gains strengthens up and inflations picks up.
- Towards the end of the week, gold prices slipped to Rs.3,083 per gram.
November '16 - Week 2 (7th to 13th)
- Gold traded at Rs.3,083 per gram on 7th November.
- Wedding season demand gave gold prices support to climb up.
- The U.S. elections took its toll on the market as Donald Trump won the election.
- In the domestic market, PM Modi’s announcement of the ban on Rs.500 and Rs.1,000 notes led to a sudden spike in demand for gold on 8th and 9th November.
- The price of gold dropped drastically as gold purchases with cash required PAN card details.
- Gold traded at Rs.3,059 per gram at the end of the week indicating a declining trend this week.
November '16 - Week 3 (14th to 20th)
- Gold traded at Rs.3,054 per gram on 14th November.
- Prices fell this week as demand was muted in the domestic market after the strike on black money rendered Rs.500 and Rs.1,000 notes unusable.
- On account of shortage of cash, PAN card requirements, and fear of scrutiny by the IT department, jewellers and retailers saw empty stores this week.
- Gold prices dropped to Rs.2,976 per gram on 18th November, the lowest for this week.
- In the global market, gold prices edged higher over the uncertainty of economic policies under Donald Trump’s regime.
- The dollar retreated from its 14-year high which also led to a rise in prices.
- Gold traded at Rs.2,986 per gram at the end of the week as the market stabilised.
November '16 - Week 4 and 5 (21st to 30th)
- Gold traded at Rs.2,984 per gram on 21st November.
- Prices dropped this week on account of the cash crunch the Indian economy is facing.
- Gold business has been brought down by 75% since the demonetisation move.
- With fear of taxes and penalties, customers have retreated amid a gloomy domestic market.
- Gold traded at Rs.2,942 per gram on 30th November.
- The wedding season demand has taken a serious hit as people have put off their weddings or downsized due to the shortage of cash and withdrawal limits imposed.
- In global market, the dollar grew strong putting pressure on gold.
|1st October rate||Rs.3,152 per gram|
|31st October rate||Rs.3,065 per gram|
|Highest rate in October||Rs.3,152 per gram on 1st and 2nd October|
|Lowest rate in October||Rs.3,018 per gram on 17th October|
October '16 - Week 1 (1st to 7th)
- Gold traded at Rs.3,152 per gram on 1st October.
- Prices fell this week as an improving U.S. economy gave the dollar support.
- The U.S. Federal Reserve was advised to hike the interest rate to avoid inflation and a bigger increase in the future.
- Demand in the domestic market has been dampened by stricter tax laws requiring everyone to provide PAN details while purchasing gold in cash.
- Gold prices tumbled to Rs.3,027 per gram on 7th October.
October '16 - Week 2 (8th to 14th)
- Gold showed positive trends before dropping at the end of the week.
- Gold traded at Rs.3,026 per gram at the beginning of the week.
- Global demand rose as the interest rate hike from the U.S. Federal Reserve seemed distant.
- Demand in the domestic market also increased on account of jewellers preparing for the festive season.
- Prices climbed to Rs.3,040 per gram on 13th October, the highest for this week.
- On 14th October, weak global trends and reduced offtake by jewellers brought gold prices down to Rs.3,027 per gram.
October '16 - Week 3 (15th to 21st)
- Gold traded at Rs.3,021 per gram at the start of the week.
- Prices climbed on account of firm overseas trends.
- The wedding season also triggered demand in the domestic spot market.
- Gold traded at Rs.3,049 per gram on 20th October which was the highest for this week.
- On 21st, gold rates had fallen to Rs.3,041 per gram.
October '16 - Week 4 (22nd to 28th) & Week 5 (29th to 31st)
- Gold traded at Rs.3,046 per gram at the start of the week.
- Gold prices fluctuated but overall there was an increase in the fourth week.
- With jewellers increasing their intake to prepare for the wedding season, prices of gold climbed even further.
- A weakening dollar gave demand for gold a boost in the global market.
- Investors believe the Fed rate hike will take place gradually owing to speculations in the overseas market.
- The highest price of gold was Rs.3,067 per gram on 29th and 30th October.
- The week closed with gold trading at Rs.3,065 per gram on 31st October.
|1st September rate||Rs.3,120 per gram|
|30th September rate||Rs.3,176 per gram|
|Highest rate in September||Rs.3,197 per gram on 8th September|
|Lowest rate in September||Rs.3,120 per gram on 1st September|
September '16 - Week 1 and 2 (1st to 10th)
- Gold gained this week playing off global cues that favored the metal.
- Gold traded at Rs.3,210 per gram on 1st September.
- Rates continued to climb till 8th September when gold touched Rs.3,197 per gram.
- Gold gained at the beginning of the week as slow economic data dampened prospects of a Fed rate hike this month. But as the expectations of the hike coming soon heighten again, gold slipped by 9th September.
September '16 - Week 3 (11th to 17th)
- Gold rates dropped this week as the global market played off the hawkish comments from the U.S. Federal Reserve officials that an interest rate hike in September is highly possible.
- Gold traded at Rs.3,181 per gram on 11th and shed Rs.35 by the end of the week.
- Domestic demand was subdued as the gold lost its appeal.
- Gold was at a low price of Rs.3,146 per gram on 17th September.
September '16 - Week 4 (18th to 24th)
- Gold rates climbed this week based on bullish trends in the global markets.
- Gold traded at Rs.3,146 per gram on 18th September.
- Prices climbed gradually as domestic demand was firm in light of global trends and the festive season.
- On 24th September, gold prices touched Rs.3,193 per gram.
- Pressure of a Fed rate hike has been eased as the U.S. Federal Reserve has put the hike on hold.
September '16 - Week 5 (25th to 30th)
- Gold prices tumbled this week in view of the dollar gaining strength.
- With the U.S. presidential elections in full swing, the Fed rate hike has been put on the back burner.
- Gold traded at Rs.3,193 per gram on 25th September, and reached its lowest for the week on 28th September, trading at Rs.3,155 per gram.
- Domestic demand from jewellers and stockists was reduced.
|1st July rate||Rs.3,201 per gram|
|31st July rate||Rs.3,142 per gram|
|Highest rate in July||Rs.3,229 per gram on 3rd August|
|Lowest rate in July||Rs.3,148 per gram on 8th August|
August '16 - Week 1 (1st to 7th)
- Gold rates rose as the week began, bolstered by growing demand and a weak Dollar.
- Gold traded at Rs.3,210 per gram on the 1st and at Rs.3,171 per gram on the 7th of August.
- Prices fell as equities and the Dollar rose towards the end of the week on strong NFP data.
August '16 - Week 2 (8th-14th)
- The second week of August was shinier for the yellow metal.
- Gold traded at Rs.3,148 on 8th August and climbed to Rs.3,181 by the end of the week.
- Owing to the dollar slipping, gold rates rose. Coupled with sluggish U.S. retail data, a Fed rate hike doesn’t seem likely.
- Prices soared to Rs.3,198 per gram on 10th August, the highest for the week, owing to an increase in domestic retail demand, and despite weakening trends in the overseas market.
August '16 - Week 3 (15th-21st)
- Gold traded quite steadily through the third week of August.
- The gold rate was Rs.3,181 per gram on 15th August.
- Gold prices were on the rise owing to sustained demand from the domestic jewellers owing to the upcoming festive season.
- The price of gold stood at Rs.3,200 per gram at the end of the week, indicating a slight increase.
August '16 - Week 4 (22nd-28th)
- Gold prices dropped through the week owing to a stronger dollar.
- Steady demand in the domestic market as the festive season approaches helped gold maintain its rates.
- Gold traded at Rs.3,184 per gram on 22nd August and fell to Rs.3,164 per gram by the end of the week.
August '16 - Week 5 (29th-31st)
- Gold dropped this week as the dollar gained strength.
- Gold traded at Rs.3,156 per gram on 29th and 30th of August.
- As the U.S. released fresh upbeat payroll data, the U.S. Federal Reserve is more confident of a rate hike this year.
- Gold dropped to a two-month low as the demand in the domestic market was sluggish as well.
|1st July rate||Rs. 3,069 per gram|
|31st July rate||Rs. 3,214 per gram|
|Highest rate in July||Rs. 3,214 per gram on July 30 and 31|
|Lowest rate in July||Rs. 3,075 per gram on July 3|
July'16 - Week 1 and 2 (1st to 10th)
- Owing to global cues, gold prices stayed relatively steady with a slightly inclining trend going into the month of July.
- The month opened at Rs.3,129.50 on 1st July and traded at Rs.3,162.50 on 11th July.
- The incline can be attributed to the Brexit vote and growing expectations of the central banks providing further monetary stimulus to the market.
- Positive U.S. job data supported the dollar sending gold prices down on July 8th.
July'16 - Week 3 (11th to 17th)
- Gold prices fell slightly during this period, dipping from the previous week as demand dropped marginally.
- Prices were recorded at Rs.3,155 per gram on the first day of the week and Rs.3,146 per gram on the last day of the week.
- Prices fell towards the middle of the week, however the difference in prices between the first and last days of the week was Rs.9 only.
July '16 - Week 4 (18th to 24th)
- Gold rates have been on a steady decline since the release of surprisingly strong U.S. economic data.
- Gold traded at Rs.3,140 on 18th July and jumped up to Rs.3,148.50 on 19th, the highest for the week.
- Gold rates then fell, reaching its lowest on 21st July at Rs.3,123.50.
- Gold seemed to pick up by the end of the week but overall, weak trends in the global market coupled with muted demand in the domestic market have kept gold prices low.
July‘16 - Week 5 (25th to 31st)
- Gold rates were recorded at Rs.3,118.50 on the 25th of July, and prices fluctuated until the 29th as marginal gains were written off by subsequent losses.
- On the 30th of July, prices rose to Rs.3,214 and remained unchanged for another day, thus closing the month at that figure per gram.
|1st June rate||Rs.2,934|
|30th June rate||Rs.3,105|
|Highest rate in June||Rs.3,180 on 27th of June|
|Lowest rate in June||Rs.2,916 on 3rd of June|
Jun'16 - Week 1 (1st to 5th)
- In Chennai, gold rates seemed to fall at the beginning of the month but suddenly increased quite significantly.
- Owing to the global trends and the speculations of a rate hike from the U.S. Federal Reserve dying out, the demand for gold has increased, thus allowing prices to increase.
- Gold traded at Rs. 2,934 on 1st June and closed at 2,974 on 5th June.
- The jump in prices is predicted to continue on the back of surprisingly weak data on U.S. jobs.
Jun'16 - Week 2 (6th to 12th)
- 1st day of the second week of June.
- There was no change in the price of gold on the 7th of June as gold traded at Rs. 2,968 per gram.
- Gold price shot up to Rs. 3,039 on the last two days of the second week, 11th and 12th of June.
Jun'16 - Week 3 (13th to 19th)
- Gold opened the week at Rs. 3,064 per gram on the 13th of June.
- The prices rose further as the week progressed as gold hit its highest for the month on the 16th of June at Rs. 3,122 per gram.
- Gold ended the week at Rs. 3,087 per gram on the 19th of June.
Jun'16 - Week 4 (20th to 26th)
- Due to a steady demand for this precious metal, as the month came neared the end, there was an increased noticed in the price of gold.
- Gold opened at Rs. 3,076 per gram at the beginning of the week.
- Due to decreased expectations of interest rate hike by the U.S. Federal Reserve, the price of gold continued to increase steadily despite a few minor fluctuations here and there.
- The lowest price of gold during the entire week was seen on the 23rd of June at Rs. 3,023 per gram.
- This increase in prices is predicted to continue due to surprisingly weak data on U.S. jobs.
Jun'16 - Week 5 (27th to 30th)
- Gold rates were somewhat constant during the week, with minimal changes recorded in trading.
- Prices were recorded at Rs.3,180 on the 27th of June and Rs.3,105 on the 30th of June.
- The overall decline in prices between the first and last day of the last week of June was Rs.75.
|1st May rate||Rs. 3,069 per gram|
|31st May rate||Rs. 2,914 per gram|
|Highest rate in May||Rs. 3,075 per gram on May 3|
|Lowest rate in May||Rs. 2,899 per gram on May 30|
May'16 - Week 1 (1st to 7th)
- Gold rates were somewhat constant during the week, with minimal changes recorded in trading.
- Prices were recorded at Rs.3,069 on the 1st of May and Rs.3,050 on the 7th of May.
- Prices did not vary by much during the week as global and domestic cues ensured that prices remained stable.
May ‘16 - Week 2 (8th to 14th)
- Gold rates were somewhat constant during the week, with minimal changes recorded in trading.
- Prices were recorded at Rs.3,073 on the 8th of May and Rs.3,051 on the 14th of May.
- Prices did fluctuate, but not by much during the week as global and domestic cues ensured that prices remained somewhat stable.
May ‘16 - Week 3 (15th to 21st)
- Gold rates varied during the third week of May, but losses were recorded on most day of this seven-day period.
- Prices were recorded at Rs.3,051 on the first day of the week and Rs.3,015 on the last.
- Despite marginal losses on the third, fifth and last day of trading, the difference between prices on the first and last day of the week was only Rs.36.
May ‘16 - Week 4 (22nd to 28th)
- Gold rates declined at a steady pace through the last week of May.
- Gold prices were recorded at Rs. 3,015 on the 22nd of May and Rs. 2,916 on the 28th of May.
- With the growing expectations of a hike in gold rates, the prices have been steadily declining. There is also a decrease in demand from the gold coin makers and industrialists.
May ‘16 - Week 5 (29th to 31st)
- Gold rates were constant during the week, with few changes witnessed in trading.
- Prices declined as the month progressed, closing at Rs. 2,914 per gram on the last day of the month.
- Fluctuation in prices were not very significant due to domestic and global cues ensuring the stability of gold rates.
|1st April rate||Rs 2,870|
|30th April rate||Rs 3,069|
|Highest rate in April||Rs 3,069 on 30th|
|Lowest rate in April||Rs 2,869 on 4th|
|% Change||+ 6.93%|
Apr'16 - Weeks 1 & 2 (1st to 10th)
- Gold prices appreciated over the first ten days of the month as global cues predominantly affected domestic rates.
- Prices were Rs.2,877 on 1st and Rs.2,944 on 10th.
- Prices were volatile all through the weeks, with prices rising and falling on alternative days, ultimately ending Rs.67 higher till 10th.
Apr ‘16 - Week 3 (11th to 17th)
- Gold rates were in a stable range in third week’s trading.
- Prices were Rs.2,950 on 11th and Rs.2,957 on 17th.
- Prices didn’t vary by much as stable global and domestic cues kept rates in a constant range.
Apr ‘16 - Week 4 (18th to 24th)
- Gold was marginally lower in the fourth week.
- Prices were Rs.2,960 on 18th and Rs.2,958 on 24th.
- Gold rose to Rs.2,998 by 21st before losing out the gains and settling Rs.2 lower for the week.
Apr ‘16 - Week 5 (25th to 30th)
- Gold rates in Chennai picked up marginally from the previous week, with gold trading at Rs 2,962 on 25th.
- An overall increase in rates was witnessed over the week.
- Gold rates crossed the Rs 3,000 mark on 29th, closing the week at Rs 3,069.
1st March rate
31st March rate
Highest rate in March
Rs 2,991 on 8th, 9th and 10th
Lowest rate in March
Rs 2,699 on 2nd and 11th
Mar'16 - Week 1 (1st to 6th)
- Gold trading was off in Chennai in the 1st week of March as jewellers and bullion traders in the state capital went on an indefinite strike against the proposed measure from the government that 1% excise duty will be levied on jewellery.
- Prices were Rs.2,976 on 1st and Rs.2,976 on 6th.
Mar'16 - Week 2 (7th to 13th)
- There was intermittent trading of gold as jewellers continued their strike against proposed measures of levying 1% excise duty on non-silver jewellery sales and PAN details for transactions above Rs.2 lakhs.
- Prices were Rs.2,970 on 7th and Rs.2,989 on 13th, with most of the trading spots and jewellers opting to keep their shutters closed over the week.
Mar ‘16 - Week 3 (14th to 20th)
- Gold markets remained closed in the city for the most part as protests entered the 3rd week.
- Prices were Rs.2,937 on 7th and Rs.2,940 on 13th.
Mar ‘16 - Week 4 (21st to 27th)
- Gold traders were still protesting in the fourth week while jewellers were open for business for the most part.
- Prices were Rs.2,914 on 21st and Rs.2,896 on 27th.
- Prices rose to Rs.2,943 on 22nd before falling to Rs.2,896 by 25th.
- Prices were constant at Rs.2,896 for the rest of the week.
Mar ‘16 - Week 5 (28th to 31st)
- The protest by jewellers impacted gold rates, with markets witnessing changes on a daily basis.
- Gold rates ranged between Rs 2,874 on 28th and Rs 2891 on 31st, with a high of Rs 2,910 reached on 30th.
1st February rate
29th February rate
Highest rate in February
Rs.2,984 on 25th and 29th
Lowest rate in February
Rs.2,720 on 1st
Feb'16 - Week 1 (1st to 7th)
- Gold continued with its positive run from January to post profits in the 1st week of trading in February.
- Prices were Rs.2,720 on 1st and Rs.2,813 on 7th.
- Gold breached the 2,800-mark for the first time this year and touched a 9-month high, rising on the back of strong wedding seasonal demand.
- Gold prices appreciated on all days of the week, gaining Rs.93 in the process and settling at Rs.2,813 to end the week on a high.
Feb '16 - Week 2 (8th to 14th)
- Gold surged in the second week also, rising on the back of domestic demand for the ongoing wedding season, a firming global trend as well as a weaker rupee which made imports costlier.
- Prices were Rs.2,814 on 8th and Rs.2,936 on 14th.
- Gold breached the 2,900-mark and surged to a 19-month high figure of Rs.2,960.50 on 12th February, with 11 straight winning sessions being the longest period of rising this year so far.
- Prices closed at a slightly lower Rs.2,936 on 13th and 14th to end the week on a high note.
Feb '16 - Week 3 (15th to 21st)
- Gold prices continued the positive streak coming into the 3rd week of February.
- Prices were Rs.2,888.50 on 15th and Rs.2,973 on 21st.
- Gold prices appreciated for the most part of the week except for a slight dip on 17th when prices fell to Rs.2,885 from Rs.2,896.50.
- Gold breached the 2,900-mark on 18th by trading at Rs.2,918 and gained another Rs.55 over the rest of the week to settle at Rs.2,973.
Feb '16 - Week 4 (22nd to 29th)
- Gold prices appreciated towards the end of February in Chennai.
- Rates were Rs.2,928 on 22nd and Rs.2,984 on 29th.
- Gold rose at the start of the week, reaching 4-year high figures in terms of net monthly gain in price of gold.
- Gold rose on the back of firm global cues and scattered domestic buying before dipping a little towards the end of the week as domestic demand weakened.
- Gold had consecutive positive sessions till 25th to touch Rs.2,984 before dropping to Rs.2,960 by 28th.
- Prices rose by Rs.24 on 29th to end the month on a high of Rs.2,984.
|4th January rate||Rs.2,569|
|31st January rate||Rs.2,710|
|Highest rate in January||Rs.2,719 on 28th|
|Lowest rate in January||Rs.2,569 on 4th|
Jan'16 - Week 1 (4th to 10th)
- Gold prices appreciated in the first week of trading in 2016.
- Rates were Rs.2,569 on 4th and Rs.2,635 on 10th.
- Gold rates appreciated consistently from 4th to 7th by an overall margin of Rs.60 on the back of global cues and jewellers demand to take prices up to Rs.2,629.
- Prices fell marginally to Rs.2,626 on 8th before appreciating to Rs.2,635 on 9th where it stayed for 10th also.
Jan '16 - Week 2 (11th to 17th)
- Gold prices were up again in the 2nd week on the back of increased demand from jewellers stocking up for the wedding season sales.
- Rates were Rs.2,632 on 11th and Rs.2,654 on 17th.
- Gold lost value on 12th and 13th by an overall margin of Rs.39 to drop to Rs.2,593 on 13th.
- Gold prices recovered over the next two days to touch Rs.2,630 by 15th.
- There was a gain of Rs.24 on 16th which allowed gold to breach Rs.2,650 mark for the first time this year.
- Gold closed the week at Rs.2,654 by 17th.
Jan '16 - Week 3 (18th to 24th)
- Gold rates appreciated in the 3rd week on the back of firm overseas trends and increased buying from domestic jewellers to meet wedding season demand.
- Rates were Rs.2,642 on 18th and Rs.2,660 on 24th.
- Gold prices appreciated steadily on 19th, 20th and 21st to touch Rs.2,676 on 21st.
- Prices declined by Rs.18 on 22nd to Rs.2,658 before stabilizing at Rs.2,660 for the rest of the week.
Jan '16 - Week 4 (24th to 31st)
- Gold gained value in the last week of the month.
- Rates were Rs.2,678 on 25th and Rs.2,710 on 31st.
- Gold prices rose all through the week as the dollar weakened on speculation about unchanged rates from the Federal Reserve.
- Gold rose by Rs.30 on 26th before rallying some more to Rs.2,719 by 28th.
- Prices dropped to Rs.2,706 on 29th and rose marginally to Rs.2,710 to end the week and month at 2,700+ figures.
1st December rate
31st December rate
Highest rate in December
Rs.2,598 on 5th and 6th
Lowest rate in December
Rs.2,521 on 3rd
Dec'15 - Week 1 (1st to 7th)
- Gold rates appreciated in the 1st week of December.
- Prices were Rs.2,565 on 1st and Rs.2,593 on 7th.
- Gold fell by Rs.44 over the first 3 days to settle at Rs.2,521 on 3rd.
- Rates rallied over the next two days, with appreciations of Rs.24 and Rs.53 on 4th and 5th respectively to rest at Rs.2,598 by 5th evening.
- Prices stabilized in the remaining part of the week and closed at Rs.2593 on 7th.
Dec'15 - Week 2 (8th to 14th)
- Gold rates were stable overall in the 2nd week of the month.
- Prices were Rs.2,572 on 8th and Rs.2,570 on 14th.
- Gold rose to Rs.2,581 on 9th before losing the gains over the next two days to end lower at Rs.2,562 on 11th.
- Prices appreciated by Rs.21 on 12th to Rs.2,593 where it stayed on 13th also, before losing Rs.23 on 14th to end at Rs.2,570.
Dec'15 - Week 3 (15th to 21st)
- Gold rates were stable again in the 3rd week.
- Prices were Rs.2,559 on 15th and Rs.2,559 again on 21th.
- Prices declined marginally for the first 3 days consecutively to fall to Rs.2,555 by 17th.
- Gold dropped by Rs.29 on 18th to rest at Rs.2,526 before rallying on the next day to touch Rs.2,548 on 19th.
- Gold picked slightly by Rs.11 to touch Rs.2,559 on 21st.
Dec'15 - Week 4 (22nd to 28th)
- Gold rates dropped by Rs.14 overall in the 4th week.
- Prices were Rs.2,573 on 15th and Rs.2,556 on 21th.
- Gold prices declined by Rs.20 on 23rd to drop to Rs.2,553 where it stayed for 24th also.
- Gold appreciated to Rs.2,565 on 25th and remained stable there till 27th.
- Gold declined marginally on the last day of the week to drop to Rs.2,556.
Dec'15 - Week 5 (29th to 31st)
- Gold prices dropped in the 5th week.
- Rates were Rs.2,560 on 29th and Rs.2,534 on 31st.
- Prices fell by Rs.6 on 30th and Rs.20 on 31st to end at Rs.2,534.
1st November rate
30th November rate
Highest rate in November
Rs.2,682 on 2nd
Lowest rate in November
Rs.2,544 on 30th
- Gold rates fell substantially in the first week of November.
- Gold was priced at Rs.2,676 on 1st and Rs.2,608 on 7th.
- Gold rates appreciated marginally on 2nd to touch Rs.2,682.
- Rates went on a downward spree from 3rd to 7th except for 6th when gold gained Rs.2.
- The biggest drop in the week was by Rs.25 on 4th when price fell to Rs.2,636 from the previous day’s figure of Rs.2,661.
Nov '15 - Week 2 (8th to 14th)
- Gold rates dropped in the 2nd week of November.
- Gold was priced at Rs.2,608 on 8th and Rs.2,582 on 14th.
- There was an appreciation of Rs.16 on 15th when prices touched Rs.2,624.
- Prices declined steadily for all days remaining in the week.
Nov '15 - Week 3 (15th to 21st)
- Gold rates dropped marginally through the 3rd week.
- Prices were Rs.2,582 on 15th and Rs.2,570 on 21st.
- Gold appreciated to Rs.2,593 on 16th before falling over the next two days by Rs.45 to rest at Rs.2,548 on 18th.
- Rates went on to appreciate over 19th and 20th by Rs.33 to touch Rs.2,581 on 20th.
- Prices declined by Rs.11 on 21st to end the week at Rs.2,570.
Nov '15 - Week 4 and 5 (22nd to 30th)
- Gold rates declined in the final days of November.
- Gold was priced at Rs.2,571 on 22nd and Rs.2,544 on 30th.
- Rates hovered around Rs.2,570 for the most of the 4th week with marginal deviations.
- Gold declined on 28th by Rs.15 to touch Rs.2,554 from Rs.2,569 on 27th.
- There was another fall in rates on 30th when prices dropped to Rs.2,544 from Rs.2,554.
1st October rate
31st October rate
Highest rate in October
Rs.2,734 on 15th
Oct '15 - Week 1 (1st to 7th)
- Gold gained value in the first week of October.
- It was priced at Rs.2,622 on 1st and Rs.2,676 on 7th.
- There was a significant rise in rates on 3rd by a margin of Rs.42 to settle at Rs.2,666.
- Prices stabilized around the 2,650 mark over the next few days before breaching the 2,670 mark on 7th.
Oct '15 - Week 2 (8th to 14th)
- Gold rate appreciated again in the second week of October.
- Rates were Rs.2,663 on 8th and Rs.2,725 on 14th.
- Gold prices rose sharply in the next few days to breach the 2,700 level on 12th when prices hit Rs.2,702.
- Gold rate dropped to Rs.2,686 on 13th before increasing to Rs.2,725 on 14th.
Oct '15 - Week 3 (15th to 21st)
- Gold rates were stable on the whole in the third week of the month.
- Rates were Rs.2,734 on 15th and Rs.2,732 on 21st.
- Gold rate on 15th at Rs.2,734 was the highest gold rate in Chennai for October.
- Prices lost some value in the first 4 days and recovered in the next two days to breach the 2,730 mark once more.
Oct '15 - Week 4 (22nd to 28th)
- Gold rates gained value in the fourth week.
- Prices were Rs.2,711 on 22nd and Rs.2,724 on 28th.
- Prices appreciated to Rs.2,721 on 23rd before losing value on 24th to rest at Rs.2,702.
- Rates were stable for the remaining part of the week, with a steep gain on the last day.
Oct '15 - Week 5 (29th to 31st)
- Gold rate declined considerably in the last 3 days of the month.
- Prices were Rs.2,708 on 29th, which declined to Rs.2,685 on 30th and further declined to Rs.2,676 on 31st.
Gold price in Chennai at the start of the month was Rs.2,702. Rates declined somewhat over the next few days but stayed above the Rs.2,670 mark by the end of the first week of September 2015. By 10th of the month prices had declined to Rs.2,639 and stayed between Rs.2,630 to Rs.2,640 for the remaining part of the week ending on 14th September.
Prices started appreciating by the middle of the 3rd week and reached Rs.2,673 by 21st of the month. Prices went through a volatile period over the next few days. Gold rate dropped to Rs.2,653 on 23rd before managing two days of appreciation to reach Rs.2,708 on 25th September.
Prices remained stable for the next three days to come to Rs.2,688 on 28th and fell to Rs.2,658 by 29th of the month. Gold rates in Chennai saw a period of volatility in the month of September, however the month beginning and end rates were at the same level. Gold rates are likely to remain volatile over the next few days. The upcoming festival season is expected to propel gold rates so if you’re planning to buy gold in the next few days, now may be a good time.
Rates are commonly depicted for 24 karat and 22 karat gold of different weights e.g. 1 gram, 8 grams, 10 grams, 100 grams, 1 kilogram,1 sovreign etc.
- Gold price trends in Chennai over the last 3 years
- Gold price trends in Chennai 2015
Gold prices have risen and fallen in line with demand and pricing of the precious metal.
24 karat prices: Over the last 3 years i.e. 2012 - 2015, gold peaked at Rs.3,276/gram on 27th Nov. 2011. It saw a steady decline over the following years before dipping to a low of Rs.2,608/gram on 18th April 2013. After a choppy performance over the next few months, it reached a new low of Rs.2,544 on 28th June 2013. It subsequently rallied to Rs.3,255/gram on 26th Aug. 2013. Prices have been on a general decline since then. On 1st Dec.2014, prices declined to Rs.2,580/gram. Despite some recovery over the following months, rates have predominantly remained below the Rs.2,800/gram mark. As of 7th June 2015, the price stood at Rs.2,703/gram.
22 karat prices: They have generally mirrored the movement of 24K prices, rising and falling at the same time. The maximum price recorded over the last 3 years was on 27th Nov. 2012 at Rs.3,064/gram and the lowest price recorded was on 1st Dec. 2014 at Rs.2,372/ gram. 22 karat gold trades lower than 24 karat gold given that it is not as pure. It has recently been hovering between Rs.2,400/gram to Rs.2,600/gram and as of 7th June 2015, the price stood at Rs.2,521/gram.
24 karat prices: The highest recorded price for 2015 between the start of the year until June 7th 2015 stood at Rs.2,865/gram on 21st Jan. 2015 and the lowest price for the same period stood at Rs.2,619/gram on 18th Mar. 2015.
22 karat prices: The highest recorded price for 2015 between the start of the year until June 7th 2015 stood at Rs.2,678/gram on 21st Jan. 2015 and the lowest price for the same period stood at Rs.2,441/gram on 18th Mar. 2015.
Rates indicated are based on a number of factors and the best indication of prevalent prices for the given dates based on prevalent information.
Gold is often bought from reputed jewelers in Chennai. Some of the key players are Tanishq, GRT, Kirtilal Kalidas, Damini, Prince Jewellery, Mehta Jewellery, Khazana Jewellery etc. They offer a wide range of gold items including ornaments, gold coins and other customized gold pieces. All stores quote the latest gold rates and are a good source of information on how the gold market is performing as dealers and customers interact during their trades. Gold bars, biscuits and coins can be purchased from banks as well but they do not offer buy-back facilities. Jewelers or gold traders will, on the other hand, buy these items from retail buyers.
As with most gold purchases across India, gold is purchased to hedge against inflation. All metros across India, including Chennai, have seen a spike in the cost of living and this is only expected to go higher. Gold has traditionally been viewed as a form of investment which holds value even during times of uncertainty, mainly because gold almost always has good resale value and can be easily sold making it a very liquid asset. In fact, gold becomes more valuable during a crisis.
Inflation erodes a person’s savings. When inflation is accounted for in calculating total returns from an investment e.g. bank fixed deposits, the effective return of the investment is adversely affected. Also, when other forms of investment are expected to underperform, investors move their money into gold.
Jewelry: Although the most popular way of investing on gold, buyers often ignore the fact that making charges and wastage are deducted when estimating how much a particular piece of jewelry is worth. A retail buyer who wishes to sell jewelry at a later date may not receive the total current gold rate after allowing for such deductions.
Residents and visitors to Chennai are always keen to know about the various jewelry shops in and around the city. Many of the country’s leading jewelers have retail outlets here. Gold rates in Chennai are important for those indulging in gold shopping. This is especially true during auspicious occasions and marriages when gold is bought in large quantities.
Gold coins: A large portion of Chennai’s gold-buying population invests in gold coins; usually 24K gold coins. One of the reasons for this is because, 24K gold, being pure, can be converted to jewelry by alloying it with other base metals. Again, well-known, established jewelers in Chennai are sought out to buy these gold coins as they can be trusted when it comes to purity of coins. If a coin is not pure, the gold rate applicable at time of sale will be as per the coin’s fineness i.e. the actual amount of purity of the coin.
- Also Check:Gold Rate in Tamil Nadu
Also Check Gold Price in NearBy Cities of Chennai
|Also Know: Silver Rate in Chennai|
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News About Chennai Gold Rate
Gold and Silver on MCX Trade Low
On the MCX (Multi Commodity Exchange), Gold and Silver were trading low because of a gain in US dollar after comments by officers of US Federal Reserve suggested interest rate hike in March. Gold trade reduced by 0.62% or Rs.184 and silver trade reduced by 0.41% or Rs.177. In Ahmedabad, gold spot prices on the NCDEX was Rs.29,566 per 10 grams and silver was Rs.43,200 per 1 kg by the end of Tuesday.
1st March, 2017
Gold rates remain firm, investors looking for rate hike
Gold rates are going steady after the drop that it witnessed during the last session. Investors are eagerly waiting for the details about the latest meeting of the Federal Reserve. This would give them the hints about the hike in rate of interest for gold.
At 0336 GMT, Spot gold remained firm at $1,236. The United States Gold futures eased 0.2% to $1,237. According to the chief analyst of Shandong Gold Group Jiang Shu, Gold rates are not expected to go up in March.
22nd February 2017
Gold Prices Soar to Three-Month High Owing to Increased Political Risk
Gold prices rose to their highest levels in the past three months as political risks regarding the elections in Europe coupled with concerns regarding the policies implemented by Donald Trump increased safe haven demand. The value of the euro recovered following a decline against the dollar owing to political risks, and investors were wary about Trump’s immigration policy. Market experts are of the belief that the underlying demand for gold stems from the fact that the precious metal is viewed as a hedge against political risks, and that the price of the yellow metal will continue to increase until the middle of February owing to uncertainties in Europe and the US.
14th February 2017
Gold supported by Europe and U.S. political uncertainty
Price of gold steadied as political uncertainty created by European elections and U.S President Donald Trump’s move to ban individuals from 7 countries that have a Muslim majority supported the price of this precious metal. Subdued activity due to Lunar New Year holiday in numerous Asian countries and nervousness prior to Federal Reserve’s two day meeting on monetary policy was reported by traders.
Price of spot gold had increased by 0.1% at $1,192.55 per ounce at 1425 GMT. This can be compared to the two and half week low of $1,180.65. U.S gold futures also increased by 0.1% to $1,189.8. Trump’s administration had tempered an important element of the immigration ban but this move reinforced increasing worries regarding investment in the United States. The U.S Federal Reserve increased the rate of interest in the month of December and hinted at three rises in 2017. This is because of Trump’s administration’s promises of boosting growth through tax cuts, deregulation and spending. Higher prices could reflect on a higher U.S currency which makes dollar-denominated gold a lot more expensive for other currencies, thereby reducing demand.
30th January 2016
Gold and silver prices settled higher on 27th December
On 27th December, the gold price was up 0.59% to $1140.30, while silver was up 1.56% to $16.01. Trading was restrained with the US investors after the Christmas holiday weekend. London markets remain closed. According to analysts, concerns about European bank solvency, and uncertainty about President-elect Donald Trump's economic policies may increase gold prices in the coming year. However, the gold price may fall over the short-term if U.S. bond yields show a steady climb. Ten-year U.S. Treasury notes traded higher with yields of 2.563%.
29th December 2016
Gold price drops by Rs.500 to Rs.27,750 per 10 grams
Gold price plunges by Rs.500 to over 10-month low of Rs.27,750 per 10 grams, tracking a weak global trend. Another reason for the plunge is the reduced offtake by jewellers, owing to a negligible demand at the domestic spot market in view of the prevailing cash crunch following demonetisation. In Delhi, gold of 99.9% and 99.5% purity fell by Rs.500 each to Rs.27,750, and Rs.27,600 per 10 grams, respectively. Sovereign remained unchanged at Rs.24,000 per piece of 8 grams. Globally, the gold price fell 1.26% to $1,128.20 an ounce, and silver fell by 5.06% to $15.95 per ounce in New York. Silver fell by Rs.1,350 to Rs.39,600 per kg due to poor offtake by industrial units, and coin makers. Weekly-based delivery fell by Rs.1,365 to Rs.39,610 per kg. Silver coins fell by Rs.1,000 to Rs.71,000 for buying, and Rs.72,000 for selling of 100 pieces.
22nd December 2016
Gold prices hiked after a 10-month low
Gold prices rose after a 10-month low. According to Jiang Shu, chief analyst at Shandong Gold Group, gold has gained support from Chinese jewellery makers on the occasion of an early spring festival next year. Spot gold was up by 0.2% at $1,172.17 an ounce, while U.S. gold futures fell 0.2% to $1,173.70 per ounce. Traders expect a 0.5 to 0.75% rise in interest rates by the Federal Reserve next week.
Fed officials believe that aggressive fiscal and tax changes could lead to rapid rise in interest rates and raise the risk of recession. SPDR Gold Trust fell 0.04%. Silver was up 0.3% at $16.77 per ounce, platinum was up 0.2% to $935.99 an ounce and palladium was up 0.1% to $743.90 per ounce.
14th December 2016
Gold prices up for second day as a result of physical buying and dollar slump
Possibly an ardent effect following the Modi-led government banning Rs.500 and Rs.1,000 currencies, gold jumped back from a five and a half month low for the second day running, reversing three sessions losses. Facing yet another fall after the election of Donald Trump, the US treasury hailed gold’s biggest price surge in over five years. Spot gold was up 0.3% at $1,217.54 an ounce. The rise in gold prices is a variable caused by physical buying in Southeast Asia and the dip in the dollar. The increase physical buying of gold is seen by experts as a possible inevitable effect of demonetisation, with people putting their trust in precious metals rather than cash for the long run. Rumors doing the rounds that the government is planning to ban gold imports could have also played a role in physical buying.
24th November 2016
Gold and Silver Demand Dull after Demonetisation
Gold and silver witnessed a sudden stall in demand post Modi’s announcement of the ban on Rs.500 and Rs.1,000 notes. The surprise of the announcement triggered an unwonted “gold rush” from those holding black money. Jewellers had reported that customers had made calls demanding to purchase high values of gold. Unscrupulous jewellers sold off their stocks of smuggled gold at high prices between Rs.40,000 and Rs.55,000 per 10 grams. Demand was soon muted as PAN card requirements became more stringent. Jewellers and retailers complained of empty stores and showrooms. Cash shortage and the inability to use black money took its toll on the jewellery business.
22nd November 2016
Currency changes in India causes gold rush, then a slump
The ongoing currency crunch in India resulted in empty jewellery stores as the gold trade reeled from the impact. As opposed to booming sales in the wedding season, gold dealers get poor business owing to PM Modi’s surprise announcement of demonetisation.
Right after the shocking announcement, gold dealers saw a sudden rise in customers before the midnight deadline, willing to pay 67% higher than the current rate for gold. Post which, the long customer line disappeared. According to jewellers, the handful of people buying gold this week were those with emergencies such as weddings. Most jewellers are expecting to resume gold sales in a few months. However, according to the World Gold Council, the overall gold import will suffer this year.
18th November, 2016
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