Gold Prices In Chennai Today Surges Rs. 1600 To Touch All-Time High; Will It Drop Soon?

Gold prices in Chennai today continued its upward rally, hitting record highs and extending its bullish momentum for the week. This post-budget period has been highly profitable for gold investors, with gold prices in Chennai soaring to unprecedented levels. However, retail buyers are waiting for a price correction, hoping for a dip in gold prices in Chennai before making their next purchase. On the global front, gold prices surged again on Friday due to the rising U.S.-China trade tensions, leading investors to shift toward safe-haven assets like gold.

Gold Rates in Chennai

As of 8th February 2025, 24-carat gold rates in Chennai jumped by Rs. 170 per 10 grams to cost Rs. 86,670. While the 22-carat gold rates spiked by Rs. 250 to retail at Rs. 79,450 per 10 grams. The cheaper variant, 18-carat gold, rates in Chennai rose by Rs. 100 to cost Rs. 65,600 per 10 grams.

In a similar line, the 100 grams of 22-carat gold rallied Rs. 1600 to stand at Rs. 794,500. While the 24-carat gold per 100 grams spiked to Rs. 1500, which is now retailing at Rs. 8,66,700.

Silver Prices in Chennai Today

Silver prices in Chennai today spiked by Rs. 1,000 per kilogram to cost Rs. 107,000, and 100 grams of white metal currently stand at Rs. 10,700 after rising by Rs. 100.

Chennai Gold Rates Movement in the Last Five Days

Over the last five days, the prices have been quite volatile with major gains and losses.

Spot Gold and Silver Price Update

As per a latest bullion report from Reuters, spot gold rose 0.2% to USD 2,861.46 per ounce as of 1:41 p.m. ET (18:41 GMT), with a 2% gain for the week after briefly touching a record high of USD 2,886.62 earlier in the session. Meanwhile, U.S. gold futures settled 0.4% higher at USD 2,887.60. In contrast, spot silver declined 0.8%, trading at USD 31.94 per ounce.

MCX Gold and Silver Futures Outlook

On the Multi Commodity Exchange (MCX), gold futures, set to mature on April 4, 2025, rose by 0.54% to trade at Rs. 84,990 per 10 grams at the end of Friday's trading. Meanwhile, silver futures, with an expiry date of March 5, 2025, slipped in red on Friday, slipping by 0.05% at Rs. 95,285 per kilogram.

Analysts at ICICI Direct Research said that "MCX Gold April is expected to face the hurdle near the Rs.85,000 level and trade lower towards the Rs.83,800 level. Further, a move below the ₹83,800 level may cause prices to slip towards the ₹83,000 level. While MCX Silver March is expected to face the hurdle near the multiple resistance zone at Rs.96,600 and move lower towards Rs.94,000. Only above the Rs.96,600 level would it turn bullish and open the doors towards Rs.98,000."

Expert Analysis of Gold and Silver Prices

With the gold price in Chennai today reaching new highs, experts predict short-term volatility in gold rates. While some believe the gold rate in Chennai today per gram may see minor corrections, overall gold prices in India are expected to remain strong due to global uncertainties and rising investment demand.
According to the ICICI Direct Research Report, "Gold is expected to take a pause in its rally and correct towards $2820 on expectation of improved US non-farm payroll numbers. A strong labor market and improved growth numbers from the US would support the dollar to move higher and limit any major upside in the bullion. Further, hawkish comments from central bank members would also weigh on metal prices, as one of the Fed members indicated fewer rate cuts this year amid fiscal policy uncertainty. Meanwhile, safe haven buying due to trade war uncertainties is likely to provide support for the yellow metal."