Gold Rates in Chennai Tumbles: Rs.11,000/100g Lost in Three Days; Silver Drops Rs.1,000

Yellow Metal prices in Chennai encountered a huge drop bringing the prices to months low today. The rise in the U.S. Dollar Index and Treasury yields following the outcomes of the Federal Reserve meeting is putting pressure on bullion prices.

Gold Price in Chennai Today

On 20th December 2024, 22 carat gold rates in Chennai was at Rs. 70,400 after slipping Rs, 300 per 10 grams. While 24 carat gold rate slipped by Rs.330 to cost Rs. 76,800 per 10 grams. In similar lines 18 carat gold rates in Chennai Fell by Rs. 250 To retail at Rs. 57,600.

The decline was seen in higher weight quantities as well, 100 grams of 24-carat gold in Bangalore is now priced at Rs. 7,68,000, shedding Rs. 3,300, while 100 grams of 22-carat gold is priced at Rs. 7,04,000, down by Rs. 3,000.

Silver Prices in Chennai Today

Silver rates in Chennai today Fell Rs.1000 per kg second decline this week and following 4 days of no movements in Prices and currently stand at Rs.98,000 Similarly, the price for 100 grams of silver costs Rs. 9,800 which fell Rs.100.

Chennai Gold Price 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 Spot Silver Rates

As per a recent report by Reuters, spot gold remained relatively unchanged at USD 2,596.89 per ounce as of 03:26 GMT, marking a 2% decline for the week so far. U.S. gold futures saw a slight uptick, rising by 0.1% to USD 2,611.30. On the other hand, silver is on track to record its worst weekly performance since December 2023 the report further stated. Spot silver prices dropped by 0.4%, settling at $28.92 per ounce.

Factors for The Drop In Gold Prices

Gold prices fell sharply for the third consecutive session following the Federal Reserve's monetary policy update as the Fed signaled a slower pace of rate cuts, dampening investor sentiment.

Market attention has shifted to the U.S. Personal Consumption Expenditure (PCE) data, the Fed's preferred inflation gauge, due later in the day.

As per Fxstreet report, spot gold recorded slight gains of over $0.20, despite the Fed's less dovish approach to monetary policy. U.S. economic growth showed a robust 3.1% year-over-year increase in Q3, influencing market dynamics.

Additionally, The US 10-year Treasury bond yield rose five basis points to 4.568% after the Fed's decision as per Fxstreet report The US Dollar Index also surged 0.16% to 108.39 further weighing on Bullion.