Chennai Gold Price Plummets Ahead Of Diwali: 22k/100g Dips by Rs. 5500, Silver Down by Rs. 2,000/Kg on Oct 24

Gold prices in Chennai today dropped considerably after a sharp rally that was observed on wednesday. Yellow metal rates soared to unprecedented levels, breaching the 80,000 mark in the previous session amid the strong festive demand and the ongoing geopolitical uncertainties in the Middle East. However, today's decline in prices resulted from a stronger U.S. dollar, which limited the appeal of the precious metal, and a surge in U.S. Treasury yields signaling a shift in investor sentiments

As of today, the 22-carat gold price in Chennai for 10 grams fell by Rs. 550 bringing it to Rs. 72,850. The 24-carat gold price also corrected, decreasing by Rs. 600 per 10 grams to stand at Rs. 79,470. Similarly, 18-carat gold experienced a significant decline today, falling by Rs. 450 per 10 grams to reach Rs. 60,100.

In larger quantities, the price for 100 grams of 24-carat gold is now Rs. 7,28,500, showing a sharp decline of Rs. 5,500. Meanwhile, the price for 100 grams of 22-carat gold has dropped by Rs. 6,000, currently standing at Rs. 7,94,700.

Major Factors Impacting Gold Prices today

Retail shoppers are currently in their relentless pursuit of gold purchases, which is one of the major factors driving the upward movement of gold in India. The decline in prices is particularly welcomed by potential buyers who were deterred by the high prices ahead of Diwali and Dhanteras.Market experts predict that gold prices in Chennai may remain bullish as the festive season reaches its peak. Dhanteras, which will be observed on October 29th, and Diwali on October 31st are the two major gold-buying festivals in India. Many people believe that buying gold on this day brings good luck and prosperity. Hence, demand for gold is expected to remain strong for the remainder of the year, potentially leading to further price hikes.

On the global front, the ongoing geopolitical tensions in the Middle East, particularly the Israel and Hezbollah conflict, have strengthened investors' sentiments towards gold as a safe haven asset. Apart from that, the US presidential election is just weeks away, and the growing unpredictability is providing major support to the precious metal segment. Global bullion prices have been surging to new highs, defying the headwinds of rising interest rates, a stronger dollar, and a positive stock market.

Gold rates in other major cities in India:

Silver Rates In Chennai Today

1 kilogram silver rate in Chennai dropped by Rs. 2,000 to cost Rs. 1,10,000. Similarly, the price for 100 grams of silver experienced a significant dip of Rs. 200 to reach Rs. 11,000.

On the Multi Commodity Exchange, silver futures crossed the Rs. 1 lakh mark for the first time on Wednesday. Currently, the December contracts are trading at Rs. 98,397, reflecting a rise of 0.63%, which indicates a growing interest and activity in the silver market.

Spot Gold And Silver Rates On October 24th

According to the latest reports from Reuters, "spot gold increased by 0.5% to $2,729.71 per ounce as of 0621 GMT, remaining just shy of the record high of $2,758.37 reached on Wednesday. This uptick was driven by heightened demand fueled by concerns over the upcoming U.S. elections and ongoing tensions in the Middle East. However, the U.S. dollar remained close to three-month highs, which capped gold's potential for further gains. Meanwhile, U.S. gold futures also rose by 0.5%, reaching $2,742.70."