Gold Prices in Chennai Drop Sharply on Nov 28: 24K Gold Cheaper by Rs. 1600/100g; What's Driving the Decline?

Gold prices in Chennai on November 28 experienced a sharp dip as the US dollar moved upward, fueled by the rising bond yields. The renewed geopolitical tension between Russia and Ukraine is causing major volatility in the bullion market, leading to the recent price decline in Chennai and other regions.

Gold Price In Chennai today:

The drop in prices is seen across all purities. On Nov 28. 22-carat gold prices in Chennai today cost Rs. 70,900 after declining Rs. 150 per 10 grams. The 24-carat gold rate also slipped by Rs. 160 to cost Rs. 77,350 per 10 grams.

The prices for 100 grams of 24-carat yellow metal are now Rs. 773,500 after falling by Rs. 1,600, and 22-carat gold also dropped by Rs. 1,500 to stand at Rs. 709,000 per 100 grams.

Silver Prices in Chennai on 26 Nov

There have been no major changes to silver rates in Chennai in the last two days, and currently the price for 1 kg of silver stands at Rs. 98,000, and 100 grams of silver retails at Rs. 9,800.Chennai.

Gold Price Movement in the Last Five Days

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

Spot gold and spot silver rates in the global market

As per a latest report from Reuters, gold prices slipped on Thursday, with spot gold declining by 0.3% to $2,627.60 per ounce as of 03:02 GMT, and U.S. gold futures falling by 0.5% to $2,627.00. Spot silver also dropped by nearly 1%, reaching $29.78 per ounce.

Factors Affecting Gold Rates In Chennai:

Yellow metal currently is exhibiting a massive volatility in prices largely influenced by international market trends.

• The Ongoing geopolitical tensions and economic data releases are major drivers of the current market environment.

• A rising U.S. dollar index (currently at 106.22, up by 0.13%) is exerting downward pressure on gold prices. As the dollar strengthens, gold becomes less attractive for holders of foreign currencies, reducing its demand and driving prices lower.

• Rebounding U.S. Treasury yields have contributed to a stronger U.S. dollar. As the yields recover, they exert additional pressure on gold prices, since higher bond yields make gold less appealing compared to fixed-income investments.

• Speculation about future interest rate cuts by the Federal Reserve is influencing gold prices. While inflation remains persistent, a 64.7% probability of a rate cut in December suggests that gold may benefit from a softer monetary policy in the long run.

• As per market experts, these factors together will potentially shape the market conditions, and while gold faces pressure from stronger economic indicators and the dollar, its long-term outlook remains positive.