Gold Shines Bright In Chennai On Dec 9: 24K Gold Jumps Rs.1600/100g; Silver Stable At Rs.1,00,000

Yellow metal rates in Chennai today are showing signs of being on the rise after the gloomy week observed previously. The market is now seeing renewed interest in gold as the demand has picked up considerably. Investors are now looking forward to the Federal Reserve meeting next week for more idea rate cuts.

Gold Price in Chennai today:

The 916 variety of gold, or 22-carat gold, prices in Chennai today cost Rs. 71,300 per 10 grams, which jumped by Rs. 150, while the 24-carat gold cost Rs. 77,780 per 10 grams after rising Rs. 160 per 10 grams.

The prices for 100 grams of 24-carat yellow metal are now Rs. 7,77,800, which soared by Rs. 1600, and 22-carat gold spiked by Rs. 1500 to stand at Rs. 7,13,000 per 100 grams.

Silver Prices in Chennai Today

In Chennai, silver prices today remain steady, with the rate for one kilogram of the white metal priced at Rs. 1,00,000. For smaller quantities, the cost of 100 grams of silver is Rs. 10,000.

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 In The Global Market

Spot silver observed an increase of 0.4%, rising to USD 31.08 per ounce, while spot gold climbed by 0.5%, reaching USD 2,644.91 per ounce as of 02:38 GMT, Reuters reported. This rise comes after a nearly 1% decline in bullion prices the previous week. Additionally, U.S. gold futures added 0.3%, moving up to $2,666.80. According to a recent Reuters report, the precious metals market is showing positive signs of recovery, with both gold and silver gaining as investors anticipate upcoming economic data from the US.

Key Factors Driving The Gold Market:

• As per the ICICI Direct Research report, spot gold prices recouped their losses and edged higher, supported by a decline in U.S. treasury yields, despite strong U.S. jobs data.
• U.S. non-farm payrolls for November increased by 227,000, surpassing expectations, but the unemployment rate rose slightly to 4.2%, which raised rate cut expectations.
• The U.S. dollar held firm near 106, supported by the better-than-expected jobs report and a rise in consumer sentiment, the report stated.
• The rise in unemployment rates fueled expectations for a 25 bps rate cut in December, with the probability of a Federal Reserve rate reduction rising to 86%, according to ICICI Direct Research.

Market Outlook By ICICI Direct Research

Spot gold is expected to consolidate within the range of $2610 to $2665. Safe-haven demand will limit its downside, while a strong U.S. dollar and the Fed's cautious stance on rate cuts will restrict upward movement. The increasing likelihood of a rate cut by the Federal Reserve in December will provide additional support to gold prices, boosting demand for the precious metal.

Escalating geopolitical tensions in the Middle East, as well as ongoing conflicts between Russia and Ukraine, are expected to enhance gold's safe-haven appeal, providing support to bullion prices.

Focus will shift to this week's inflation data, which may give further clarity on central bank policies. On the MCX, gold is expected to move between Rs.76,200 and Rs.77,300. A break above Rs.77,300 would turn bullish. MCX silver March contracts are expected to hold support at Rs.91,000 and may rise towards Rs.94,000.